Increasing Wages,Factor Substitution,and Cropping Pattern Changes in China |
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| Authors: | Zhoufu Yan Shurui Zhang Fangwei Wu Binlei Gong |
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| Institution: | 1. Lecturer, College of Economics and Management, Shanghai Ocean University, China;2. Lecturer, School of Business Administration, Northeastern University, China;3. Professor, Institute for Urban–Rural Development, Shanghai University of Finance and Economics, China;4. Professor, China Academy for Rural Development and School of Public Affairs, Zhejiang University, China |
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| Abstract: | This article analyzed the influence of increasing wages on cropping patterns from theoretical and empirical perspectives. The results showed that the increasing labor cost provided a significant incentive to adjust the grain cropping pattern, which increased the production of the three major cereal grains but reduced the production of other grain crops. Increasing wages had a significant negative impact on cash crops. More labor-intensive cash crops experienced a larger negative impact in the context of increasing wages. The increase in labor costs also had a negative impact on the proportion of vegetables produced, which was more evident in northern China. A further mechanism test indicated that factor substitution was a significant reason for cropping pattern changes; this illustrated the substitution of labor by machinery not only between grain crops and cash crops but also among different cash crops. |
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| Keywords: | cropping pattern changes factor substitution increasing wages production transformation |
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