Agricultural mechanization and the performance of the local Chinese economy
基于2010-2020年面板数据和工具变量法，发现农业机械化导致地方GDP下降，因为机械化减少了农业劳动需求，促使年轻人转向非农部门，降低了农业劳动供给和家庭消费，并导致经济作物被粮食作物替代，从而减少农业总产出。
In this study, we analyze the impact of agricultural mechanization on the local Chinese economy from 2010 to 2020. Findings based on panel data and instrumental variable methods show that agricultural mechanization led to a significant decline in the local gross domestic product. In particular, agricultural mechanization changes the sector’s production and lowers its output value. Agricultural mechanization has reduced the need for labor to such an extent that young Chinese tend to seek jobs in the non-farming sector, leading to a fall in the local agricultural labor supply and household consumption, adversely affecting the development of local industries and service sectors. Mechanization has also led to cash crops being increasingly replaced by grain crops, reducing the total agricultural output. Finally, this paper presents some policy suggestions for agricultural production and rural development.