Did the Establishment of Poyang Lake Eco-Economic Zone Increase Agricultural Labor Productivity in Jiangxi Province, China?

Tao Wu,Yuelong Wang

doi:10.3390/su8010008

Abstract

In this paper, we take the establishment of Poyang Lake Eco-Economic Zone in 2009 as a quasi-natural experiment, to evaluate its influence on the agricultural labor productivity in Jiangxi Province, China. The estimation results of the DID method show that the establishment of the zone reduced agricultural labor productivity by 3.1%, lowering farmers’ net income by 2.5% and reducing the agricultural GDP by 3.6%. Furthermore, this negative effect has increased year after year since 2009. However, the heterogeneity analysis implies that the agricultural labor productivities of all cities in Jiangxi Province will ultimately converge. We find that the lack of agricultural R&D activities and the abuse of chemical fertilizers may be the main reasons behind the negative influence of the policy, by examining two possible transmission channels—the R&D investment and technological substitution. Corresponding policy implications are also provided.

Highlights

IntroductionPoyang Lake, which is located in the northern part of Jiangxi Province and connects to the lower
Poyang Lake, which is located in the northern part of Jiangxi Province and connects to the lowerYangtze River, is the largest freshwater lake in China
The estimation results of the DID method show that the establishment of the zone reduced agricultural labor productivity by 3.1%

Summary

Introduction

Poyang Lake, which is located in the northern part of Jiangxi Province and connects to the lower. Yangtze River, is the largest freshwater lake in China. It provides the residential and industrial water use for almost half of the regions of Jiangxi Province, especially as a water source for the production of agriculture industry. Provincial Party reviewed “the Planning of Poyang Lake Eco-Economic Zone” and submitted it to the State Council of China. According to the planning document, the Poyang Lake Eco-Economic. Zone includes the three cities of Nanchang, Jiujiang, Jingdezhen, and a total of 38 counties, including some counties from Yingtan, Xinyu, Fuzhou, Yichun, Shangrao and Ji’an. The objective of the zone is to maintain sustainable environmental, social, and economic development.

Objectives

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Results

Conclusion