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Impacts of Geographical Indications on Agricultural Growth and Farmers’ Income in Rural China

Xiaoyu Yin, Jia Li (), Jingyi Wu, Ruihan Cao, Siqian Xin and Jianxu Liu
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Xiaoyu Yin: School of Economics, Shandong Normal University, Jinan 250399, China
Jia Li: School of Economics, Shandong Normal University, Jinan 250399, China
Jingyi Wu: School of Economics, Shandong Normal University, Jinan 250399, China
Ruihan Cao: School of Economics, Shandong Normal University, Jinan 250399, China
Siqian Xin: School of Economics, Shandong University, Jinan 250100, China
Jianxu Liu: School of Economics, Shandong University of Finance and Economics, Jinan 250014, China

Agriculture, 2024, vol. 14, issue 1, 1-21

Abstract: Geographical indications (GIs) mitigate information asymmetry in agri-food transactions by providing consumers with origin and quality information. This paper explores the impact of GIs on rural development in China by examining agricultural output and farmers’ income. Utilizing a large county-level dataset and comprehensive official GI information, this study estimates the impact of GIs on agricultural output and rural income using panel-fixed-effects models. The results reveal that GIs significantly boost agricultural added value and rural per capita disposable income. A series of methods, including difference-in-differences, propensity score matching with difference-in-differences, and double machine learning combined with difference-in-differences using random forests verify the robustness of the results. Moreover, by categorizing GIs based on product types, the analysis reveals heterogeneous effects of different GI categories on agricultural growth and income gains for farmers. The research findings in this paper offer valuable insights to inform policymaking aimed at advancing rural development, raising farmers’ incomes, and promoting sustainable agri-food supply chains.

Keywords: geographical indications; agricultural growth; farmers’ income; DID model; double machine learning (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
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