Estimating the Effect of Land Fragmentation on Machinery Use and Crop Production

Wangyang Lai, Brian Roe and Yumei Liu ()

No 205280, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: Using a recent data set from farm households in the provinces of Hebei and Shandong, we investigate the effect of land fragmentation on machinery use as well as the effect of machinery use on crop production. Endogeneity is addressed by utilizing land fragmentation due to previous long-term land assignment as an instrument and first difference estimation between normalized wheat and corn output from the same plots in the same year. The main results indicate that consolidating an average farm of 0.31 hectares from 2.28 plots to one plot increases machinery use by about 10%. Further, a 10% increase of machinery use increases crop production between 0.5% and 1%.

Keywords: Crop Production/Industries; Land Economics/Use; Production Economics (search for similar items in EconPapers)
Pages: 34
Date: 2015-05-25
New Economics Papers: this item is included in nep-cna
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205280

DOI: 10.22004/ag.econ.205280

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