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Increasing wage, mechanization, and agriculture production in China

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  • Qiao, Fangbin

Abstract

As the population bonus disappeared, the wage rate has increased significantly since the early 2000s in China. Increasing wages have significantly affected export-oriented industries as well as agriculture. Mechanization is another factor affecting China's agriculture. This study shows the increasing wage and the mechanization have a negative impact on land area devoted to labor-intensive crops but a positive impact on land area devoted to labor-extensive crops. Based on nationally representative data, the empirical results conform well to the theoretical predictions.

Suggested Citation

  • Qiao, Fangbin, 2017. "Increasing wage, mechanization, and agriculture production in China," China Economic Review, Elsevier, vol. 46(C), pages 249-260.
    • Handle: RePEc:eee:chieco:v:46:y:2017:i:c:p:249-260
    DOI: 10.1016/j.chieco.2017.10.002
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    References listed on IDEAS

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    More about this item

    Keywords

    Increasing wage; Mechanization; Labor-intensive; Labor-extensive; China;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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