Impact of Economic Development Level and Agricultural Water Use on Agricultural Production Scale in China

Jiaxing Pang, Ningfei Wang, Xue Li, Xiang Li, Huiyu Wang and Xingpeng Chen
Additional contact information
Jiaxing Pang: College of Earth and Environmental Sciences, Lanzhou University, Lanzhou 730000, China
Ningfei Wang: College of Earth and Environmental Sciences, Lanzhou University, Lanzhou 730000, China
Xue Li: College of Earth and Environmental Sciences, Lanzhou University, Lanzhou 730000, China
Xiang Li: College of Earth and Environmental Sciences, Lanzhou University, Lanzhou 730000, China
Huiyu Wang: College of Geology and Jewelry, Lanzhou Resources and Environment Voc-Tech College, Lanzhou 730000, China
Xingpeng Chen: College of Earth and Environmental Sciences, Lanzhou University, Lanzhou 730000, China

IJERPH, 2021, vol. 18, issue 17, 1-12

Abstract: The change of agricultural production scale is directly related to food security and the stable development of social economy. Particularly, the influence of economic development level and agricultural water use on agricultural production scale cannot be ignored. Therefore, this paper uses the fully modified ordinary least squares ( FMOLS ) and the Dumitrescu–Hurlin panel causality test models to discuss the effects of the level of economic development, agricultural water use, the level of urbanization, and the market price of agricultural products on the scale of agricultural production in China. The analysis results indicated that agricultural water use, the level of urbanization, and the market price of agricultural products promoted an increase of the scale of agricultural production at the total sample level; a 1% increase for these three variables will result in an increase of the scale of agricultural production of 0.634%, 0.377%, and 0.292%, respectively. The influence of economic development level on agricultural production scale accords with Kuznets curve. However, at the regional level, the influence of each variable on the eastern region is consistent with the trend of the total sample. In the central region, the impact of economic development on agricultural production scale shows a U-shaped curve, and the improvement of urbanization level inhibits the expansion of agricultural production scale. In the western region, all variables failed to pass the significance test. The results of the FMOLS model were validated by the fixed effects model. The results of causality tests showed that bidirectional causality existed between the scale of agricultural production and the level of economic development, the scale of agricultural production and agricultural water use, the level of economic development and the market price of agricultural products, and the level of urbanization and the market price of agricultural products. In different regions, there were differences in causality between variables. Therefore, based on the empirical results, we put forward some policy suggestions to maintain the scale of agricultural production.

Keywords: the scale of agricultural production; economic development level; agricultural water use; urbanization level; the market price of agricultural products (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1660-4601/18/17/9085/pdf (application/pdf)
https://www.mdpi.com/1660-4601/18/17/9085/ (text/html)

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:gam:jijerp:v:18:y:2021:i:17:p:9085-:d:624135

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().