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Increasing wage, mechanization, and agriculture production in China

Fangbin Qiao

China Economic Review, 2017, vol. 46, issue C, 249-260

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.

Keywords: Increasing wage; Mechanization; Labor-intensive; Labor-extensive; China (search for similar items in EconPapers)
JEL-codes: D20 Q01 J3 (search for similar items in EconPapers)
Date: 2017
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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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