Wang, XiaobingYamauchi, FutoshiOtsuka, KeijiroHuang, Jikun2015-01-072015-01-072014-12https://hdl.handle.net/10986/21134This paper uses farm panel data from China to examine the dynamics of land transactions, machine investments, and the demand for machine services. Recently, China's agriculture has experienced a large expansion of machine rentals and machine services provided by specialized agents, which has contributed to mechanization of agricultural production. The empirical results show that an increase in nonagricultural wage rates leads to expansion of self-cultivated land size. A rise in the proportion of nonagricultural income or the migration rate also increases the size of self-cultivated land. Interestingly, however, relatively educated farm households decrease the size of self-cultivated land, which suggests that relatively less educated farmers tend to specialize in farming. The demand for machine services has also increased if agricultural wage and migration rate increased over time, especially among relatively large farms. The results on crop income support the complementarity between rented-in land and machine services (demanded), which implies that scale economies are arising in Chinese agriculture with mechanization and active land rental markets.en-USCC BY 3.0 IGOAGRARIAN STRUCTUREAGRICULTURAL ACTIVITIESAGRICULTURAL DEVELOPMENTAGRICULTURAL ECONOMICSAGRICULTURAL EMPLOYMENTAGRICULTURAL GROWTHAGRICULTURAL INCOMESAGRICULTURAL LANDAGRICULTURAL POLICYAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTSAGRICULTURAL REGIONSAGRICULTURAL SECTORSAGRICULTURAL WAGEAGRICULTURAL WAGESAGRICULTUREANNUAL GROWTHAVERAGE ANNUAL GROWTHCAPITAL-LABORCROP INCOMECROP PRODUCTIONCROP YIELDCROPSCULTIVATED AREASCULTIVATED LANDCULTIVATIONDAILY WAGEDEVELOPMENT ECONOMICSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC TRANSFORMATIONECONOMICSEMPLOYMENTEMPLOYMENT OPPORTUNITIESFAMILY LABORFAMILY MEMBERSFARM AREAFARM EFFICIENCYFARM EMPLOYMENTFARM EMPLOYMENT OPPORTUNITIESFARM HOUSEHOLDSFARM LABORFARM PRODUCTIVITYFARM SIZEFARM TECHNOLOGYFARM WORKFARM WORKERSFARMERSFARMING ACTIVITIESFARMLANDFARMSFOOD INSECURITYGROWTH RATEGROWTH RATESHUMAN CAPITALINCOMEINCOME GROWTHINCOME INEQUALITYINCOMESINNOVATIONSIRRIGATIONLABOR ALLOCATIONLABOR COSTSLABOR DEMANDLABOR FORCELABOR MARKETLABOR MARKETSLABOR MIGRATIONLABOR SHORTAGELABOR SUPPLYLABOR USELABORERSLABOURLABOUR MARKETSLAND CONSOLIDATIONLAND DISTRIBUTIONLAND MANAGEMENTLAND MARKETSLAND OWNERSHIPLAND REGISTRATIONLAND RENTLAND RENTALLAND RIGHTSLAND SALESLAND SIZELAND USEMAJORITY OF FARMERSMARGINAL VALUEPLOUGHINGPOLITICAL ECONOMYPRODUCTIVITYPROPERTY RIGHTSREAL WAGEREAL WAGESREGIONAL VARIATIONSRELATIVE PRICESRESOURCE ALLOCATIONRURAL AREASRURAL DEVELOPMENTRURAL HOUSEHOLDSRURAL LABORRURAL POPULATIONRURAL POVERTYRURAL RESIDENTSRURAL SECTORSSCHOOLINGSMALL FARMERSSMALL FARMSSMALL-SCALE FARMINGSTRUCTURAL TRANSFORMATIONSUPPLIERSTECHNICAL CHANGETECHNICAL EFFICIENCYTECHNOLOGICAL INNOVATIONTECHNOLOGICAL PROGRESSUNSKILLED LABORURBAN MIGRATIONURBANIZATIONVILLAGE LEADERSVILLAGE LEVELWAGE GROWTHWAGE INCREASESWAGE RATESWORKING DAYS10.1596/1813-9450-7138