The Impact of Financial Market Development on Agricultural Factor Misallocation: Household-Level Evidence from China

Song Liu, Xiongzhi Wang, Mengyuan Yang and Ziling Wang

Mathematical Problems in Engineering, 2021, vol. 2021, 1-9

Abstract:

We study the impact of financial market development on the allocation of agricultural factors in China, using national household-level survey data from 2010 to 2014. Our empirical results show the following: (1) the prices of capital and labor are negatively distorted, whereas the price of land is positively distorted; (2) the east region of China has the lowest efficiency of agricultural factor allocation; (3) the breadth of financial market development improves the agricultural factor allocation in all three regions in China, whereas the depth of financial market development only enhances the agricultural factor allocation in the west region of China. Our study presents the very first microlevel evidence on the extent of agricultural factor misallocation in China. Moreover, our results inform policymakers’ choice of prioritizing whether the breadth or the depth of the financial market alleviates agricultural factor misallocation.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://downloads.hindawi.com/journals/MPE/2021/9997438.pdf (application/pdf)
http://downloads.hindawi.com/journals/MPE/2021/9997438.xml (text/xml)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hin:jnlmpe:9997438

DOI: 10.1155/2021/9997438

Access Statistics for this article

More articles in Mathematical Problems in Engineering from Hindawi
Bibliographic data for series maintained by Mohamed Abdelhakeem ().