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The Impact of Nonfarm Activities on Agricultural Productivity in Rural China

Ye Wang, Chenggang Wang and Suwen Pan

No 103605, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association

Abstract: Although evidence abounds that the development of rural non-farm activities have increased rural household income and contributed to rural development, the underlying structure and mechanism of the linkage between agricultural productivity and non-farm activities is poorly understood. Using a unique panel dataset of Chinese villages, this article examines the mechanism by which non-farm activities influence agricultural productivity. I find that Chinese villages’ non-farm revenue has a significant positive effect on agricultural land productivity. Although non-farm activities do withdraw labor out of agriculture and therefore dampen land productivity, that negative effect is negligible in comparison with the land productivity improvement brought by nonfarm revenue-financed infrastructure capital investment.

Keywords: Agricultural and Food Policy; Productivity Analysis (search for similar items in EconPapers)
Pages: 22
Date: 2011
New Economics Papers: this item is included in nep-agr, nep-eff and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea11:103605

DOI: 10.22004/ag.econ.103605

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