Inter-sectoral Capital Flow, Labor Transfer, and Land Circulation in China: A Simultaneous Equations Approach

Qi Dong

No 356740, Agricultural Economics Society 99th Annual Conference, April 14-16, 2025, The University of Bordeaux, France from Agricultural Economics Society (AES)

Abstract: This study builds a simultaneous equation system of inter-sectoral factors flows and constructed supply-and-demand models of sectoral capital investment with the effects of inter-sectoral factors flows taken into account. Then, it adopts the three-stage estimation to model the simultaneous equation system and the supply-and-demand models using China’s macro data. The empirical results confirm the inner relationship between capital flow, labor transfer, and land circulation during China’s structural transformation. More specially, we find that inter-sectoral capital flow and land circulation are mutually reinforced by each other. Rural-urban migration promotes the land circulation from the agricultural sector to the non-agricultural sector but the land circulation from the agricultural sector to the non-agricultural sector hinders labor transfer. Labor transfer is confirmed to have a positive effect on capital flow but the opposite is not true.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance; Labor and Human Capital (search for similar items in EconPapers)
Pages: 16
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/356740/files/Q ... proach%20%281%29.pdf (application/pdf)

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:ags:aes025:356740

DOI: 10.22004/ag.econ.356740

Access Statistics for this paper

More papers in Agricultural Economics Society 99th Annual Conference, April 14-16, 2025, The University of Bordeaux, France from Agricultural Economics Society (AES) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().