IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v14y2024i7p1145-d1435270.html
   My bibliography  Save this article

The Impact of Factor Price Change on China’s Cotton Production Pattern Evolution: Mediation and Spillover Effects

Author

Listed:
  • Xuewei Zhang

    (School of Economics and Management, Inner Mongolia University, Hohhot 010020, China
    Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

  • Xiqing Zhou

    (School of Economics, Ocean University of China, Qingdao 266100, China)

  • Haimeng Liu

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

  • Jinghao Zhang

    (School of Economics and Management, Inner Mongolia University, Hohhot 010020, China)

  • Jingde Zhang

    (School of Economics and Management, Inner Mongolia University, Hohhot 010020, China)

  • Suhao Wei

    (School of Public Administration, Jilin University, Changchun 130103, China)

Abstract

Cotton is an important agricultural crop and strategic resource. China is currently the country with the largest global cotton production and consumption, but few studies have systematically analyzed the dynamic relationship between factor price change (FPC) and cotton production pattern evolution (CPPE). Based on provincial panel data from the main cotton planting areas from 1985 to 2021, this paper used spatial econometric models to empirically analyze the impact of FPC including labor price, production material cost, and mechanical cost on CPPE from the perspective of mechanical substitution difficulty. The findings are that (1) FPC significantly affected CPPE, specifically the rise of labor price induced the demand for mechanical substitution, resulting in a significant cotton agglomeration effect; (2) spatial econometric analysis found that FPC had a significant spatial spillover effect on CPPE in adjacent regions; and (3) the transfer analysis found that higher mechanical substitution difficulty exerted an inhibitory effect on cotton planting, leading to a gradual shift of the main cotton planting areas from the Yangtze River Basin and Yellow River Basin with high labor prices to the Northwest Inland region with lower labor prices. Updating the production technology and improving the efficiency of cotton specialization are effective strategies. The results are valuable for policy making related to the development of China’s cotton industry.

Suggested Citation

  • Xuewei Zhang & Xiqing Zhou & Haimeng Liu & Jinghao Zhang & Jingde Zhang & Suhao Wei, 2024. "The Impact of Factor Price Change on China’s Cotton Production Pattern Evolution: Mediation and Spillover Effects," Agriculture, MDPI, vol. 14(7), pages 1-19, July.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:7:p:1145-:d:1435270
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/14/7/1145/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/14/7/1145/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roberto Basile & Carlo Ciccarelli, 2018. "The location of the Italian manufacturing industry, 1871–1911: a sectoral analysis," Journal of Economic Geography, Oxford University Press, vol. 18(3), pages 627-661.
    2. 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).
    3. Ruiqing Miao & Madhu Khanna & Haixiao Huang, 2016. "Responsiveness of Crop Yield and Acreage to Prices and Climate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(1), pages 191-211.
    4. Jung, Yeonha, 2020. "The long reach of cotton in the US South: Tenant farming, mechanization, and low-skill manufacturing," Journal of Development Economics, Elsevier, vol. 143(C).
    5. Yishao Shi & Qianqian Yang & Liangliang Zhou & Shouzheng Shi, 2022. "Can Moderate Agricultural Scale Operations Be Developed against the Background of Plot Fragmentation and Land Dispersion? Evidence from the Suburbs of Shanghai," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    6. James Mahan & Paxton Payton, 2017. "An Agrocentric Analysis of Regional Rain Patterns as They Relate to a Rained Cotton Cropping System on the Southern High Plains of Texas," Agriculture, MDPI, vol. 7(11), pages 1-17, November.
    7. Guo, Shibo & Zhang, Zhentao & Guo, Erjing & Fu, Zhenzhen & Gong, Jingjin & Yang, Xiaoguang, 2022. "Historical and projected impacts of climate change and technology on soybean yield in China," Agricultural Systems, Elsevier, vol. 203(C).
    Full references (including those not matched with items on IDEAS)

    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. Wang, Teng & Yi, Fujin & Liu, Huilin & Wu, Ximing & Zhong, Funing, 2021. "Can Agricultural Mechanization Have a Mitigation Effect on China's Yield Variability?," 2021 Conference, August 17-31, 2021, Virtual 315098, International Association of Agricultural Economists.
    2. Li, Linfei & Khan, Sufyan Ullah & Guo, Chenhao & Huang, Yanfen & Xia, Xianli, 2022. "Non-agricultural labor transfer, factor allocation and farmland yield: Evidence from the part-time peasants in Loess Plateau region of Northwest China," Land Use Policy, Elsevier, vol. 120(C).
    3. Anna Missiaia, 2019. "Market versus endowment: explaining early industrial location in Italy (1871–1911)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(1), pages 127-161, January.
    4. Viet Ha Trinh Thi & Wenqi Zhou, 2024. "A Systematic Analysis of the Development of Agricultural Modernization and Its Effect on Crop Production in Northeastern China," Sustainability, MDPI, vol. 16(12), pages 1-12, June.
    5. Du, Xiaoxue & Ye, Fanglin, 2018. "Adaptation to Climate Change: the Role of Crop Insurance," 2018 Annual Meeting, August 5-7, Washington, D.C. 274373, Agricultural and Applied Economics Association.
    6. Shoumin Yue & Ying Xue & Jie Lyu & Kangkang Wang, 2023. "The Effect of Information Acquisition Ability on Farmers’ Agricultural Productive Service Behavior: An Empirical Analysis of Corn Farmers in Northeast China," Agriculture, MDPI, vol. 13(3), pages 1-26, February.
    7. Liang, Longwu & Chen, Mingxing & Zhang, Xiaoping & Sun, Mingxing, 2024. "Understanding changes in household carbon footprint during rapid urbanization in China," Energy Policy, Elsevier, vol. 185(C).
    8. Hiroyuki Takeshima & Rajendra Prasad Adhikari & Anjani Kumar, 2016. "Is Access to Tractor Service a Binding Constraint for Nepali Terai Farmers?," Working Papers id:9604, eSocialSciences.
    9. Haiwen Zhou, 2023. "State Capacity and Leadership: Why Did China Take off?," Chinese Economy, Taylor & Francis Journals, vol. 56(1), pages 50-68, January.
    10. Xiaoguang Chen & Madhu Khanna & Lu Yang, 2022. "The impacts of temperature on Chinese food processing firms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 256-279, April.
    11. Maria Carmela Schisani & Luigi Balletta & Giancarlo Ragozini, 2021. "Crowding out the change: business networks and persisting economic elites in the South of Italy over Unification (1840–1880)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(1), pages 89-131, January.
    12. Yuewen Huo & Songlin Ye & Zhou Wu & Fusuo Zhang & Guohua Mi, 2022. "Barriers to the Development of Agricultural Mechanization in the North and Northeast China Plains: A Farmer Survey," Agriculture, MDPI, vol. 12(2), pages 1-14, February.
    13. Thomas Barbiero & Haiwen Zhou, 2024. "Culture and Economic Development in Late Comers: Comparing China and India," Chinese Economy, Taylor & Francis Journals, vol. 57(5), pages 379-394, September.
    14. Bhattarai, Madhusudan & Joshi, Pramod Kumar & Shekhawa, R. S. & Takeshima, Hiroyuki, 2017. "The evolution of tractorization in India’s low-wage economy: Key patterns and implications," IFPRI discussion papers 1675, International Food Policy Research Institute (IFPRI).
    15. Xuelan Li & Rui Guan, 2023. "How Does Agricultural Mechanization Service Affect Agricultural Green Transformation in China?," IJERPH, MDPI, vol. 20(2), pages 1-23, January.
    16. Lee, Seunghyun, 2022. "Effects of Wet Spring on Prevented Planting," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322348, Agricultural and Applied Economics Association.
    17. Thomas, Timothy S., 2015. "US maize data reveals adaptation to heat and water stress:," IFPRI discussion papers 1485, International Food Policy Research Institute (IFPRI).
    18. Hiroyuki Takeshima & Yanyan Liu & Ian Masias, 2018. "Evolution of Agricultural Mechanization in Vietnam: Insights from a Literature Review and Multiple Rounds of a Farm Household Survey," Working Papers id:12785, eSocialSciences.
    19. Mohammad Hasan Mobarok & Wyatt Thompson & Theodoros Skevas, 2024. "Sensitivity of the United States crop basis and distribution network to precipitation," Agribusiness, John Wiley & Sons, Ltd., vol. 40(4), pages 908-925, October.
    20. repec:ags:aaea22:335522 is not listed on IDEAS
    21. Aryal, Jeetendra Prakash & Rahut, Dil Bahadur & Thapa, Ganesh & Simtowe, Franklin, 2021. "Mechanisation of small-scale farms in South Asia: Empirical evidence derived from farm households survey," Technology in Society, Elsevier, vol. 65(C).

    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:gam:jagris:v:14:y:2024:i:7:p:1145-:d:1435270. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.