Can Rural Industrial Convergence Improve the Total Factor Productivity of Agricultural Environments: Evidence from China

Abstract

The convergence of rural industries has brought about significant changes in the traditional small-scale farmer management model, as well as new requirements for the quality and skills of agricultural practitioners in China. Meanwhile, it has inevitably affected the agricultural environmental total factor productivity (AETFP). This paper endeavors to assess the impact of industrial convergence on AETFP, striving to clarify their inherent connection and furnish insightful guidance for policymaking. Utilizing inter-provincial panel data from China spanning 2008 to 2021, this paper applies the SBM-GML model for measurement purposes and employs the entropy method to evaluate the extent of industrial convergence in rural areas. It delves into the mechanism through which industrial convergence influences AETFP, utilizing the intermediary effect model and incorporating two mediating variables: rural human capital and agricultural scale operations. The findings of this research reveal that industrial convergence exerts a direct positive influence on AETFP, while rural human capital and agricultural scale operations serve as partial mediators in this process. Additionally, the stability of the transmission mechanism receives further validation via the application of interaction terms. Consequently, it is possible to enhance AETFP via the expedited convergent development of industries, coupled with the strategic utilization of rural human capital and agricultural scale operations as catalysts for further improvements in AETFP.