Does Urbanization Improve Agricultural Mechanization? —Panel Evidence from 31 Provinces in China
GAO Yanlei1,2, ZHANG Zhengyan1, WANG Zhigang1
1.School of Agricultural and Rural Development, Renmin University of China, Beijing 100872, China; 2.Department of Agricultural Economics, Purdue University, West Lafayette 47906, USA
Abstract Based on the panel data of 31 provinces in China from 2000 to 2016, this paper explores the mechanism of urbanization affecting agricultural mechanization by using the mediation effect model. The results show that, from the overall effect, urbanization has a significant positive impact on agricultural mechanization; among them, agricultural labor force and farmers’ income have played a significant positive intermediary effect, and the former is far greater than the latter; and from the perspective of different economies, urbanization in the eastern region promotes the agricultural mechanization. The mechanism shows a double intermediary effect between agricultural labor and farmers’ income, while in the central and western regions it only shows the positive intermediary effect of agricultural labor. The robust test of POLS method, random effect model and IV method supports the above conclusion. Finally, in view of the above conclusions, the paper puts forward some policy suggestions, such as guiding the transfer of agricultural labor, improving the subsidy standard for agricultural machinery, and establishing the socialized service system of agricultural machinery.