High-Quality Development of Chinese Agriculture under Factor Misallocation
Abstract
:1. Introduction
2. Theoretical Analysis and Hypothesis Research
2.1. Factor Mismatch and High-Quality Agricultural Development
2.2. Factor Mismatch, Industrial Structure Upgrade, and High-Quality Agricultural Development
2.3. Factors Mismatch, Scientific and Technological Progress, and High-Quality Agricultural Development
3. Model Construction, Variable Description, and Data Sources
3.1. Model Construction
3.2. Variable Description
3.2.1. Dependent Variable: High-Quality Agricultural Development
- Data standardization processing: In order to eliminate the influence of data dimensional and order of magnitude differences on the calculation results and cause the indicators to have horizontal comparability and applicability, the original data need to be standardized. For positive and negative indicators, the standardized processing method is as follows:
- 2.
- Calculate the proportion of the j index in year i:
- 3.
- Calculate the information entropy of the j index:
- 4.
- Calculate the redundancy of information entropy:
- 5.
- Calculate the weight of the indicator according to the information entropy redundancy:
- 6.
- After the index weight is obtained, the evaluation score of each index can be obtained according to the following formula:
- 7.
- After obtaining the score of each index, the summary score of high-quality agricultural development can be obtained by summing up according to the following formula:
3.2.2. Independent Variable: Factor Misallocation
3.2.3. Other Variables
3.2.4. Intermediary Variables
3.3. Data Sources
4. Results’ Analysis
4.1. Dynamic Evolution Characteristics of High-Quality Agricultural Development
4.2. Benchmark Regression
4.3. Robustness and Endogenous Check
- (1)
- Changing the sample size. In order to avoid the influence of extreme values on the regression results, 1% bilateral tail reduction was applied to all variables and the removed samples were re-estimated. The results are shown in Column (1) of Table 4. After the removal of extreme values, factor mismatch still has a significant inhibitory effect on high-quality agricultural development, which is consistent with the benchmark regression result.
- (2)
- Adjusting the sample period. In 2006, the Agricultural Tax Regulations of the People’s Republic of China was formally abolished, which reduced the cost of agricultural production and operation and improved the international competitiveness of agricultural products [73]. To some extent, it has changed the external environment faced by agricultural development. Based on this, this paper selected samples after 2006 for re-regression; the results in Column (2) of Table 4 show that the regression coefficient of factor mismatch is significantly negative, which further indicates that the conclusion that factor mismatch inhibits high-quality agricultural development is robust.
- (3)
- In order to avoid the model setting error and endogeneity problem of missing variables, this paper introduces the lagging term of explained variables. Two-step differential GMM and two-step system GMM estimation methods are used to deal with the endogeneity problems caused by the introduction of lag terms of explained variables. The results in columns (3) and (4) of Table 4 show that the residual term of the equation has first-order sequence correlation, but no second-order sequence correlation, indicating that the model’s set is reasonable. The Hansen overidentification test accepts the null hypothesis that tool variables are effective, indicating that the choice of tool variables is reasonable. After considering the dynamic effect of the model, the impact of factor mismatch on high-quality agricultural development still remains negative and significant. Moreover, high-quality agricultural development has significant “time inertia” and has certain path-dependent characteristics, that is, if the level of agricultural development is high in the current period, it may continue to be high in the next period, showing a certain “snowball effect”. At the same time, all explanatory variables lag one period to effectively avoid possible reverse causality. The results in Column (5) of Table 4 show that factor mismatch is significantly negative at 1% level, which is consistent with the benchmark regression results.
4.4. Heterogeneity Analysis
- (1)
- Heterogeneity of development level. According to previous literature, optimizing factor allocation is the prerequisite for high-quality agricultural development [15]. Therefore, areas with possibly high development level are more affected by factor mismatch. Hence, according to the annual average of the high-quality agricultural development score, the study area is divided into two categories: high-level and low-level. If the score of high-quality agricultural development in an area exceeds the annual average, it is considered as a high-level area, otherwise it is considered as a low-level area. For details, see columns (1) and (2) in Table 5. The results show that, regardless of the level of development, factor mismatch has a significant negative impact on high-quality agricultural development, but it has a greater impact on high-quality agricultural development in high-level areas than in low-level areas.
- (2)
- Geographical location heterogeneity. The previous literature generally believed that there were regional differences in high-quality agricultural development [24]. So, does the impact of factor mismatch on high-quality agricultural development vary with different regions? Therefore, this article divides 31 provinces in China into three regions: eastern, central, and western, for verification, as shown in columns (3) to (5) in Table 5. The results show that factor mismatch has a negative impact on high-quality agricultural development in different regions, but the impact on the western region is not significant. The reason may be that the factor mismatch degree in western China is relatively light, and the high-quality agricultural development in this region is mainly restricted by the regional natural resource endowment and economic development level [74], leading to the weakening of the marginal effect of factor mismatch.
- (3)
- Heterogeneity of the factor allocation mode. In 2013, the Third Plenary Session of the 18th Central Committee of China proposed to allow the market to play a decisive role in resource allocation. This means that the allocation of factors is dominated by the government to give way to the market. The market-based allocation of factors improves the efficiency of resource allocation and alleviates the degree of factor mismatch, which is an effective way to promote high-quality economic development [11]. This paper divides the samples into two groups around 2013, and tests the relationship between factor mismatch and agricultural high-quality development before and after the market-oriented factor allocation. The specific regression results are shown in columns (6) and (7) of Table 5. The results show that factor mismatch has a significant inhibiting effect on the improvement in the high-quality agricultural development level before market allocation. After the market-oriented allocation, although the regression coefficient of factor mismatch does not have statistical significance, the absolute value of its coefficient decreases significantly, which indicates, to some extent, that the change in factor allocation mode improves the efficiency of resource allocation and alleviates the negative impact of factor mismatch on high-quality agricultural development.
4.5. Mechanism Test
5. Conclusions
Supplementary Materials
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Primary Indexes | Secondary Indexes | Tertiary Indexes (Property) |
---|---|---|
Innovation level | Innovation base | A1: Proportion of agricultural science and technology personnel (+) |
A2: Proportion of investment in agricultural research (+) | ||
A3: Proportion of agricultural science and technology institutions (+) | ||
Innovation output | A4: Proportion of agricultural patents granted (+) | |
A5: Agricultural labor productivity (+) | ||
A6: Agricultural land productivity (+) | ||
Coordination level | Industrial coordination | B1: Proportion of rural non–farm employment (+) |
B2: Industrial structure adjustment index (+) | ||
Urban and rural coordination | B3: Binary contrast coefficient (+) | |
Green level | Resource utilization | C1: Water–saving irrigation area intensity (+) |
C2: Fertilizer utilization intensity (–) | ||
C3: Pesticide utilization intensity (–) | ||
C4: Agricultural film utilization intensity (–) | ||
C5: Agricultural water consumption (–) | ||
C6: Agricultural electricity consumption (–) | ||
Environmental impact | C7: Agricultural carbon intensity (–) | |
C8: Agricultural non-point source pollution (–) | ||
Open level | Foreign trade | D1: Foreign trade dependence of agricultural products (+) |
Foreign investment | D2: Intensity of foreign investment utilization in agriculture (+) | |
Sharing level | Welfare sharing | E1: Education level (+) |
E2: Public health level (+) | ||
Benefit sharing | E3: Urban–rural income ratio (–) | |
E4: Urban–rural consumption ratio (–) | ||
E5: Engel coefficient (–) |
Variable Types | Variable Name | Obs. | Mean | S.D. | Min | Max |
---|---|---|---|---|---|---|
Dependent variable | High-quality agricultural development | 527 | 0.33 | 0.10 | 0.18 | 0.74 |
Independent variable | factor misallocation | 527 | 1.59 | 2.31 | 0.00 | 12.91 |
Intermediary variable | Industrial structure upgrade | 527 | 0.04 | 0.02 | 0.01 | 0.11 |
Agricultural science and technology progress | 527 | 0.32 | 0.14 | 0.07 | 0.78 | |
Other variable | Urbanization level | 527 | 0.52 | 0.16 | 0.16 | 0.90 |
Cultivated land quality | 527 | 5561.67 | 945.36 | 3214.76 | 8214.00 | |
Disaster degree | 527 | 0.48 | 0.16 | 0.00 | 0.90 | |
Energy consumption | 527 | 3.37 | 1.76 | 0.86 | 11.00 | |
Industrial level | 527 | 0.45 | 0.09 | 0.16 | 0.66 | |
Economic development level | 527 | 31,307.35 | 19,448.86 | 4317.00 | 117,139.00 | |
Financial support for agriculture | 527 | 0.10 | 0.03 | 0.02 | 0.20 | |
Soil and water conservation | 527 | 3565.67 | 2915.58 | 15.22 | 14,625.00 |
Variable | (1) | (2) | (3) | (4) | (5) |
---|---|---|---|---|---|
Fm | –0.029 *** | –0.024 *** | –0.026 *** | –0.026 *** | –0.026 *** |
(−3.949) | (−2.690) | (−3.364) | (−3.068) | (−3.303) | |
Urb | 0.109 * | 0.132 * | 0.109 * | 0.109 * | |
(1.735) | (2.010) | (1.784) | (1.787) | ||
Lq | –0.051 *** | –0.055 *** | –0.053 *** | –0.046 *** | |
(−2.870) | (−3.188) | (−3.033) | (−2.919) | ||
Dis | –0.014 * | –0.015 ** | –0.016 ** | ||
(−2.021) | (−2.134) | (−2.106) | |||
Ec | –0.028 *** | –0.028 *** | –0.030 *** | ||
(−2.848) | (−3.327) | (−3.249) | |||
Ind | –0.075 * | –0.088 *** | |||
(−1.967) | (−2.959) | ||||
Pgdp | 0.030 ** | 0.029 ** | |||
(2.321) | (2.343) | ||||
Sup | –0.087 | ||||
(−1.123) | |||||
Wl | 0.004 | ||||
(1.452) | |||||
C | 0.324 *** | 0.723 *** | 0.772 *** | 0.520 *** | 0.447 ** |
(77.424) | (5.194) | (5.929) | (2.730) | (2.541) | |
Province | YES | YES | YES | YES | YES |
Year | YES | YES | YES | YES | YES |
R2 | 0.3021 | 0.3309 | 0.3512 | 0.3601 | 0.3647 |
N | 527 | 527 | 527 | 527 | 527 |
Variable | Robustness Check | Endogenous Check | |||
---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | |
L.Hq | 0.460 ** | 0.978 *** | |||
(2.192) | (23.564) | ||||
Fm | −0.025 *** | −0.015 *** | –0.019 * | –0.004 ** | –0.015 *** |
(−3.156) | (−3.246) | (–1.708) | (–2.386) | (–3.226) | |
Urb | 0.094 | 0.353 *** | 0.367 *** | 0.035 | 0.183 *** |
(1.541) | (6.202) | (2.772) | (1.154) | (5.551) | |
Lq | −0.039 ** | −0.044 *** | –0.007 | –0.001 | –0.064 *** |
(−2.714) | (−3.081) | (–0.221) | (–0.071) | (–3.332) | |
Dis | −0.015 ** | −0.016 *** | –0.003 | –0.002 | –0.019 *** |
(−2.085) | (−3.564) | (–0.577) | (–0.299) | (–2.645) | |
Ec | −0.041 *** | −0.037 *** | 0.008 | –0.001 | –0.023 ** |
(−5.149) | (−3.131) | (0.384) | (–0.185) | (–2.012) | |
Ind | −0.091 ** | −0.017 | –0.001 | 0.018 | –0.108 *** |
(−2.516) | (−0.855) | (–0.010) | (0.635) | (–3.072) | |
Pgdp | 0.036 *** | 0.009 | –0.037 * | –0.006 | 0.038 *** |
(2.751) | (0.901) | (–1.761) | (–0.271) | (2.834) | |
Sup | −0.099 | −0.173 *** | 0.095 | 0.008 | –0.041 |
(−1.390) | (−3.951) | (1.134) | (0.089) | (–0.599) | |
Wl | 0.007 ** | 0.005 * | –0.004 | –0.001 | 0.006 * |
(2.377) | (1.721) | (–0.850) | (–0.733) | (1.778) | |
C | 0.311 * | 0.268 * | 0.479 ** | ||
(1.787) | (1.832) | (2.286) | |||
Province | YES | YES | YES | YES | YES |
Year | YES | YES | YES | YES | YES |
AR(1) | 0.036 | 0.010 | |||
AR(2) | 0.903 | 0.949 | |||
Hansen | 0.694 | 0.897 | |||
R2 | 0.3723 | 0.2944 | 0.285 | ||
N | 527 | 465 | 434 | 465 | 496 |
Variable | Development Level | Geographical Location | Factor Allocation mode | ||||
---|---|---|---|---|---|---|---|
Low-Level | High-Level | East | Central | West | Government | Market | |
(1) | (2) | (3) | (4) | (5) | (6) | (7) | |
Fm | −0.018 ** | −0.034 *** | −0.030 ** | −0.105 *** | −0.007 | −0.028 *** | −0.012 |
(−2.559) | (−4.718) | (−2.415) | (−7.271) | (−0.888) | (−3.395) | (−0.878) | |
Urb | 0.076 ** | 0.169 *** | 0.143 | 0.003 | −0.005 | 0.033 | 0.540 *** |
(2.561) | (3.008) | (1.587) | (0.047) | (−0.229) | (0.956) | (7.980) | |
Lq | −0.018 | −0.100 ** | −0.144 ** | 0.039 | −0.023 * | −0.003 | −0.061 *** |
(−1.456) | (−2.506) | (−2.985) | (1.161) | (−2.108) | (−0.105) | (−4.660) | |
Dis | −0.015 * | −0.011 | −0.019 ** | 0.001 | −0.033 ** | −0.034 *** | −0.015 *** |
(−1.756) | (−0.948) | (−2.928) | (0.194) | (−2.967) | (−2.806) | (−6.735) | |
Ec | −0.020 ** | −0.003 | 0.031 | −0.018 | −0.030 ** | 0.002 | 0.027 ** |
(−2.243) | (−0.118) | (1.044) | (−0.733) | (−2.396) | (0.168) | (2.088) | |
Ind | 0.006 | −0.219 *** | −0.109 | 0.017 | −0.002 | −0.145 *** | 0.063 * |
(0.177) | (−3.369) | (−0.639) | (0.544) | (−0.057) | (−3.827) | (1.900) | |
Pgdp | 0.042 *** | 0.009 | −0.028 | 0.008 | 0.038 *** | −0.037 *** | −0.026 ** |
(5.630) | (0.338) | (−0.935) | (0.296) | (3.395) | (−2.804) | (−2.351) | |
Sup | −0.116 | −0.008 | −0.092 | −0.176 | −0.041 | 0.021 | −0.192 *** |
(−1.116) | (−0.054) | (−0.692) | (−1.120) | (−0.301) | (0.298) | (−3.477) | |
Wl | −0.002 | 0.032 *** | 0.028 *** | 0.006 | 0.002 | −0.005 | 0.037 *** |
(−0.683) | (3.832) | (3.350) | (1.025) | (0.686) | (−0.783) | (6.019) | |
C | 0.047 | 0.982 ** | 1.730 *** | −0.140 | 0.129 | 0.795 ** | 0.467 |
(0.348) | (2.244) | (4.254) | (−0.303) | (0.898) | (2.723) | (1.534) | |
Province | YES | YES | YES | YES | YES | YES | YES |
Year | YES | YES | YES | YES | YES | YES | YES |
R2 | 0.5678 | 0.434 | 0.5326 | 0.7090 | 0.4374 | 0.4620 | 0.4103 |
N | 200 | 327 | 187 | 136 | 204 | 279 | 248 |
Variable | Hq | Ts | Tech | Hq | Hq | Hq |
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Fm | –0.026 *** | −0.015 *** | −0.048 *** | −0.020 *** | −0.013 ** | −0.006 |
(−3.303) | (−4.606] | (−3.771) | (−3.468) | (−2.127) | (−1.141) | |
Ts | 0.410 *** | 0.474 *** | ||||
(5.015) | (10.728) | |||||
Tech | 0.272 *** | 0.276 *** | ||||
(10.945) | (12.756) | |||||
Urb | 0.109 * | −0.011 * | 0.354 *** | 0.114 * | 0.013 | 0.016 |
(1.787) | (−1.741) | (3.477) | (1.906) | (0.307) | (0.420) | |
Lq | –0.046 *** | 0.005 | −0.061 * | −0.048 *** | −0.03 | −0.032 |
(−2.919) | (0.570) | (−1.796) | (−3.064) | (−1.451) | (−1.685) | |
Dis | –0.016 ** | −0.005 * | −0.033 * | −0.014 * | −0.007 | −0.004 |
(−2.106) | (−1.871) | (−1.744) | (−2.034) | (−1.295) | (−0.912) | |
Ec | –0.030 *** | −0.006 | 0.039 | −0.028 *** | −0.041 *** | −0.038 *** |
(−3.249) | (−1.268) | (1.060) | (−3.126) | (−3.702) | (−3.689) | |
Ind | –0.088 *** | 0.015 | −0.477 *** | −0.094 *** | 0.041 ** | 0.036 ** |
(−2.959) | (0.998) | (−7.063) | (−3.127) | (2.488) | (2.658) | |
Pgdp | 0.029 ** | 0.009 | 0.075 *** | 0.025 ** | 0.009 | 0.004 |
(2.343) | (0.943) | (3.436) | (2.178) | (0.962) | (0.496) | |
Sup | –0.087 | 0.017 | −0.074 | −0.094 | −0.067 | −0.075 |
(−1.123) | (0.318) | (−0.269) | (−1.323) | (−1.403) | (−1.674) | |
Wl | 0.004 | −0.006 *** | 0.01 | 0.007 ** | 0.002 | 0.004 ** |
(1.452) | (−3.280) | (1.506) | (2.748) | (0.750) | (2.720) | |
C | 0.447 ** | −0.054 | 0.143 | 0.469 *** | 0.408 * | 0.433 ** |
(2.541) | (−0.341) | (0.424) | (2.795) | (1.809) | (2.212) | |
Province | YES | YES | YES | YES | YES | YES |
Year | YES | YES | YES | YES | YES | YES |
R2 | 0.3647 | 0.3432 | 0.4363 | 0.3886 | 0.6019 | 0.6336 |
N | 527 | 527 | 527 | 527 | 527 | 527 |
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Qin, S.; Han, Z.; Chen, H.; Wang, H.; Guo, C. High-Quality Development of Chinese Agriculture under Factor Misallocation. Int. J. Environ. Res. Public Health 2022, 19, 9804. https://doi.org/10.3390/ijerph19169804
Qin S, Han Z, Chen H, Wang H, Guo C. High-Quality Development of Chinese Agriculture under Factor Misallocation. International Journal of Environmental Research and Public Health. 2022; 19(16):9804. https://doi.org/10.3390/ijerph19169804
Chicago/Turabian StyleQin, Shuai, Zheying Han, Hong Chen, Haokun Wang, and Cheng Guo. 2022. "High-Quality Development of Chinese Agriculture under Factor Misallocation" International Journal of Environmental Research and Public Health 19, no. 16: 9804. https://doi.org/10.3390/ijerph19169804
APA StyleQin, S., Han, Z., Chen, H., Wang, H., & Guo, C. (2022). High-Quality Development of Chinese Agriculture under Factor Misallocation. International Journal of Environmental Research and Public Health, 19(16), 9804. https://doi.org/10.3390/ijerph19169804