IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v26y2022i3p1618-1639.html
   My bibliography  Save this article

Mechanization services, factor allocation, and farm efficiency: Evidence from China

Author

Listed:
  • Meili Huan
  • Fengxia Dong
  • Liang Chi

Abstract

The relationship between mechanization services and farm efficiency remains a debate in agricultural production. To empirically test the effects of farmers' mechanization service use on farm efficiency, we formulate a stochastic frontier (SF) model and a mediating effect model. We apply our analysis to a survey data set with 1,385 farm‐level samples collected in 13 major maize‐producing provinces in China in 2018. To address the endogenous mechanization service adoption in the SF model, a probit model is estimated. In the mediation model, two factor allocation, including agricultural investment and crop structure, is examined. Our study shows that current labor migration encouraged the adoption of mechanization services, and larger farms were more likely to use mechanization services. Moreover, our study shows that the effect of mechanization services on farm efficiency is significantly positive and is mediated by factor allocation.

Suggested Citation

  • Meili Huan & Fengxia Dong & Liang Chi, 2022. "Mechanization services, factor allocation, and farm efficiency: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1618-1639, August.
    • Handle: RePEc:bla:rdevec:v:26:y:2022:i:3:p:1618-1639
    DOI: 10.1111/rode.12892
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rode.12892
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rode.12892?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    2. Zhang, Xiaobo & Yang, Jin & Wang, Shenglin, 2011. "China has reached the Lewis turning point," China Economic Review, Elsevier, vol. 22(4), pages 542-554.
    3. Sheng, Yu & Chancellor, Will, 2019. "Exploring the relationship between farm size and productivity: Evidence from the Australian grains industry," Food Policy, Elsevier, vol. 84(C), pages 196-204.
    4. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    5. Andrew D. Foster & Mark R. Rosenzweig, 2022. "Are There Too Many Farms in the World? Labor Market Transaction Costs, Machine Capacities, and Optimal Farm Size," Journal of Political Economy, University of Chicago Press, vol. 130(3), pages 636-680.
    6. Tongwei Qiu & Biliang Luo, 2021. "Do small farms prefer agricultural mechanization services? Evidence from wheat production in China," Applied Economics, Taylor & Francis Journals, vol. 53(26), pages 2962-2973, June.
    7. Jin Yang & Hui Wang & Songqing Jin & Kevin Chen & Jeffrey Riedinger & Chao Peng, 2016. "Migration, local off-farm employment, and agricultural production efficiency: evidence from China," Journal of Productivity Analysis, Springer, vol. 45(3), pages 247-259, June.
    8. Tongwei Qiu & S.T. Boris Choy & Biliang Luo, 2022. "Is small beautiful? Links between agricultural mechanization services and the productivity of different-sized farms," Applied Economics, Taylor & Francis Journals, vol. 54(4), pages 430-442, January.
    9. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    10. Qiu, Tongwei & Shi, Xinjie & He, Qinying & Luo, Biliang, 2021. "The paradox of developing agricultural mechanization services in China: Supporting or kicking out smallholder farmers?," China Economic Review, Elsevier, vol. 69(C).
    11. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara, 2014. "Mechanization in Ghana: Emerging demand, and the search for alternative supply models," Food Policy, Elsevier, vol. 48(C), pages 168-181.
    12. Zhang, Xiaobo & Yang, Jin & Reardon, Thomas, 2020. "Mechanization outsourcing clusters and division of labor in Chinese agriculture," IFPRI book chapters, in: An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?, chapter 2, pages 71-96, International Food Policy Research Institute (IFPRI).
    13. Yi Qing & Moyu Chen & Yu Sheng & Jikun Huang, 2019. "Mechanization services, farm productivity and institutional innovation in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 11(3), pages 536-554, June.
    14. George Battese & Sumiter Broca, 1997. "Functional Forms of Stochastic Frontier Production Functions and Models for Technical Inefficiency Effects: A Comparative Study for Wheat Farmers in Pakistan," Journal of Productivity Analysis, Springer, vol. 8(4), pages 395-414, November.
    15. Xiaobing Wang & Futoshi Yamauchi & Jikun Huang, 2016. "Rising wages, mechanization, and the substitution between capital and labor: evidence from small scale farm system in China," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 309-317, May.
    16. Chen, Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2009. "Farm technology and technical efficiency: Evidence from four regions in China," China Economic Review, Elsevier, vol. 20(2), pages 153-161, June.
    17. Joshua W. Deutschmann & Maya Duru & Kim Siegal & Emilia Tjernström, 2019. "Can Smallholder Extension Transform African Agriculture?," NBER Working Papers 26054, National Bureau of Economic Research, Inc.
    18. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, June.
    19. Tun, YuYu & Kang, Hye-Jung, 2015. "An Analysis on the Factors Affecting Rice Production Efficiency in Myanmar," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 19(2), pages 167-188, June.
    20. Maria L. Loureiro, 2009. "Farmers' health and agricultural productivity," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 381-388, July.
    21. Mequanint B. Melesse & Erwin Bulte, 2015. "Does land registration and certification boost farm productivity? Evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 46(6), pages 757-768, November.
    22. Thomas Reardon & J. Edward Taylor & Kostas Stamoulis & Peter Lanjouw & Arsenio Balisacan, 2000. "Effects of Non‐Farm Employment on Rural Income Inequality in Developing Countries: An Investment Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 266-288, May.
    23. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    24. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
    25. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adane Tufa & Arega Alene & Hambulo Ngoma & Paswel Marenya & Julius Manda & Md Abdul Matin & Christian Thierfelder & David Chikoye, 2024. "Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 248-276, January.
    2. Liang Chi & Shuqing Han & Meili Huan & Yajuan Li & Jifang Liu, 2022. "Land Fragmentation, Technology Adoption and Chemical Fertilizer Application: Evidence from China," IJERPH, MDPI, vol. 19(13), pages 1-17, July.
    3. Zhang, Cheng & Nie, Kunxi & Zhu, Yueji, 2024. "Participation in land rental and labor markets and agricultural economic performance of banana farmers in China," Land Use Policy, Elsevier, vol. 146(C).
    4. Thanh‐Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2023. "Internet use and agricultural productivity in rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1309-1326, August.
    5. Xiang Deng & Jie Peng & Chunlin Wan, 2024. "The Impact of Internet Use on Land Productivity: Evidence from China Land Economy Survey," Land, MDPI, vol. 13(2), pages 1-21, February.
    6. Dianshuang Wang & Hongyun Huang & Xin Zhao & Fang Fang, 2023. "Green technological progress, agricultural modernization, and wage inequality: Lessons from China," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1673-1698, August.
    7. Meili Huan & Shaoguo Zhan, 2022. "Agricultural Production Services, Farm Size and Chemical Fertilizer Use in China’s Maize Production," Land, MDPI, vol. 11(11), pages 1-17, October.
    8. Wang, Yahua & Huan, Meili, 2023. "The effects of socialized agricultural services on rural collective action in the irrigation commons: Evidence from China," Agricultural Water Management, Elsevier, vol. 289(C).
    9. repec:ags:aaea22:335656 is not listed on IDEAS
    10. Yangxiao Lu & Suhao Wei, 2024. "Outsourcing of Agricultural Machinery Operation Services and the Sustainability of Farmland Transfer Market: Promoting or Inhibiting?," Sustainability, MDPI, vol. 16(22), pages 1-19, November.
    11. Meng, Meng & Zhang, Wuke & Zhu, Xi & Shi, Qinghua, 2024. "Agricultural mechanization and rural worker mobility: Evidence from the Agricultural Machinery Purchase Subsidies programme in China," Economic Modelling, Elsevier, vol. 139(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meili Huan & Shaoguo Zhan, 2022. "Agricultural Production Services, Farm Size and Chemical Fertilizer Use in China’s Maize Production," Land, MDPI, vol. 11(11), pages 1-17, October.
    2. Tongwei Qiu & S. T. Boris Choy & Yifei Li & Biliang Luo & Jing Li, 2021. "Farmers' Exit from Land Operation in Rural China: Does the Price of Agricultural Mechanization Services Matter?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(2), pages 99-122, March.
    3. Suhao Wei & Yangxiao Lu, 2022. "Why China’s AMS Market Is Difficult to Develop Sustainably: Evidence from the North China Plain," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    4. Qian, Long & Lu, Hua & Gao, Qiang & Lu, Hualiang, 2022. "Household-owned farm machinery vs. outsourced machinery services: The impact of agricultural mechanization on the land leasing behavior of relatively large-scale farmers in China," Land Use Policy, Elsevier, vol. 115(C).
    5. Qiu, Tongwei & Shi, Xinjie & He, Qinying & Luo, Biliang, 2021. "The paradox of developing agricultural mechanization services in China: Supporting or kicking out smallholder farmers?," China Economic Review, Elsevier, vol. 69(C).
    6. Hong, Yu & Heerink, Nico & Zhao, Minjuan & van der Werf, Wopke, 2019. "Intercropping contributes to a higher technical efficiency in smallholder farming: Evidence from a case study in Gaotai County, China," Agricultural Systems, Elsevier, vol. 173(C), pages 317-324.
    7. Liu, Xinyue & Wang, Xiaobing & Xu, Zhigang, 2023. "The polarization and constraints of scale farming in China under the impact of rising wages," Journal of Asian Economics, Elsevier, vol. 86(C).
    8. Binlei Gong, 2020. "New Growth Accounting," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 641-661, March.
    9. Zhang, Qian & Sun, Zhongxiao & Huang, Wei, 2018. "Does land perform well for corn planting? An empirical study on land use efficiency in China," Land Use Policy, Elsevier, vol. 74(C), pages 273-280.
    10. Meng Meng & Leng Yu & Xiaohua Yu, 2024. "Machinery structure, machinery subsidies, and agricultural productivity: Evidence from China," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 223-246, March.
    11. Djuraeva, Mukhayyo & Bobojonov, Ihtiyor & Kuhn, Lena & Glauben, Thomas, 2023. "The impact of agricultural extension type and form on technical efficiency under transition: An empirical assessment of wheat production in Uzbekistan," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 203-221.
    12. Meng, Meng & Zhang, Wuke & Zhu, Xi & Shi, Qinghua, 2024. "Agricultural mechanization and rural worker mobility: Evidence from the Agricultural Machinery Purchase Subsidies programme in China," Economic Modelling, Elsevier, vol. 139(C).
    13. Song, Donghui & Chen, Tong Zhang Po & Chen, Fengbo, 2021. "Heterogeneous Effects of Off-farm Employment on Production Choices of Rice Farmers in China," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329415, Asian Society of Agricultural Economists (ASAE).
    14. Wangda Liao & Fusheng Zeng & Meseret Chanieabate, 2022. "Mechanization of Small-Scale Agriculture in China: Lessons for Enhancing Smallholder Access to Agricultural Machinery," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    15. Meng Qu & Kai Zhao & Renhui Zhang & Yuan Gao & Jing Wang, 2022. "Divergence between Willingness and Behavior of Farmers to Purchase Socialized Agricultural Services: From a Heterogeneity Perspective of Land Scale," Land, MDPI, vol. 11(8), pages 1-21, July.
    16. Li, Xingguang & Liu, Jundi & Huo, Xuexi, 2021. "Impacts of tenure security and market-oriented allocation of farmland on agricultural productivity: Evidence from China’s apple growers," Land Use Policy, Elsevier, vol. 102(C).
    17. Yangxiao Lu & Suhao Wei, 2024. "Outsourcing of Agricultural Machinery Operation Services and the Sustainability of Farmland Transfer Market: Promoting or Inhibiting?," Sustainability, MDPI, vol. 16(22), pages 1-19, November.
    18. Liu, Yan & Heerink, Nico & Li, Fan & Shi, Xiaoping, 2022. "Do agricultural machinery services promote village farmland rental markets? Theory and evidence from a case study in the North China plain," Land Use Policy, Elsevier, vol. 122(C).
    19. Ma, Meilin, 2023. "Interdependent investments in attached and movable assets under insecure land rights," China Economic Review, Elsevier, vol. 77(C).
    20. Weiwei Wang & Zhihai Yang & Xiangqun Gu & Amin Mugera & Ning Yin, 2024. "How Farm Machinery Rental Services and Off-Farm Work Affect Household Income in China," Agriculture, MDPI, vol. 14(10), pages 1-16, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:26:y:2022:i:3:p:1618-1639. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.