Little Brands, Big Profits? Effect of Agricultural Geographical Indicators on County-Level Economic Development in China

Zhuang Zhang, Qiuxia Yan, Hao Zheng, Mengqing Zeng and Youhua Chen ()
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Zhuang Zhang: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Qiuxia Yan: School of Business Administration, South China University of Technology, Guangzhou 510642, China
Hao Zheng: School of Statistics, Institute of Quantitative Economics, Huaqiao University, Xiamen 361021, China
Mengqing Zeng: College of Economics and Management, South China Agricultural University, Guangzhou 510642, China
Youhua Chen: College of Economics and Management, South China Agricultural University, Guangzhou 510642, China

Agriculture, 2024, vol. 14, issue 5, 1-14

Abstract: AGIs (agricultural geographical indicators) are effective quality signals that can improve market welfare, but few studies have investigated the impact of AGIs on economic development. To fill this gap, this paper explores the impact of AGIs on per capita GDP and its mechanisms, according to country-level data in China from 2000 to 2018. For every additional AGI in the country, GDP per capita increased by 0.2–0.4%. Our conclusion remained reliable after various robustness tests. These effects were more salient in western areas, the main grain-producing areas, and settled areas. AGIs related to aquatic environments, animal husbandry, and planting products promoted economic development most significantly. For these effects, encouraging an increase in agricultural value (improving the quantity and quality of products) and promoting the agglomeration of populations, capital, and enterprises in the agricultural sector were the main mechanisms.

Keywords: agricultural geographical indicators; economic development; agricultural value-added; agglomeration effect (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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