Harnessing the Power of Mechanization: A Multivalued Treatment Effect Analysis on Productivity for Chinese Smallholders

Zhenbang Ma and Huichun Sun ()
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Zhenbang Ma: School of Finance, Nankai University, Tianjin 300350, China
Huichun Sun: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China

Land, 2024, vol. 13, issue 12, 1-21

Abstract: Developing countries, in their pursuit of the Sustainable Development Goals, are intensifying their efforts to promote agricultural mechanization, with China at the forefront, through comprehensive policy revisions aimed at enhancing mechanization levels. This study employs multivalued treatment effect (MVTE) and quantile treatment effect (QTE) methodologies to assess the impact of agricultural mechanization on labor and land productivity while also examining the seffects across different farm sizes and moderating influences. Leveraging data from the 2016 China Labor-force Dynamics Survey, the findings indicate that semi-mechanized and full-mechanized farming, compared to no-mechanized farming, significantly boost labor and land productivity for both average and lower-to-mid-level productivity farmers. Disaggregated analysis by farm size shows that larger farms benefit significantly from semi-mechanized and full-mechanized farming in terms of increased labor and land productivity. However, the incremental benefits of varying levels of mechanization on productivity are observed only in labor productivity for farmers with mid- and upper-level productivity and for those in the largest farm size group. Additionally, land transfer status, government subsidies, and the intensity of clan culture are found to significantly influence the productivity effects of agricultural mechanization in China. Consequently, it is imperative to reorient agricultural policies towards enhancing the efficiency and cost-effectiveness of mechanization, especially considering the constraints on labor and land availability and the need to minimize the environmental impact of agricultural production. In light of these discussions, this paper presents policy implications for sustainable agricultural mechanization.

Keywords: agricultural mechanization; labor and land productivity; multivalued treatment effect; quantile treatment effect; moderating effect; Chinese smallholders (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2024
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