Mechanism and Measurement of the Effects of Industrial Agglomeration on Agricultural Economic Resilience

Abstract

This study investigates the potential of agricultural industrial agglomeration to bolster agricultural economic resilience and identifies the underlying pathways. We developed an analytical framework for agricultural economics that integrates the concept of “resilience”. This framework facilitates an examination of the influence of agricultural industrial agglomeration on agricultural economic resilience, focusing on two key aspects: enhancement of income and reduction of costs. Utilizing panel data from 30 provincial-level regions in China covering the period from 2006 to 2021, this research empirically assesses the impact, underlying mechanisms, and regional variations of agricultural industrial agglomeration on agricultural economic resilience. The findings reveal that agricultural industrial agglomeration significantly boosts agricultural economic resilience. This positive influence manifests through two primary channels: firstly, “agricultural industrial agglomeration → enhancement of socialized services → agricultural economic resilience” and secondly, “agricultural industrial agglomeration → improvement of agricultural production efficiency → agricultural economic resilience”. The contribution of agricultural industrial agglomeration to agricultural economic resilience is particularly pronounced in major grain-producing regions, notably enhancing capabilities for reconstruction and reinvention, as well as adjustment and adaptation. The study concludes with recommendations aimed at strengthening agricultural economic resilience. These recommendations emphasize the critical role of agricultural industrial agglomeration in fostering agricultural economic resilience, its contribution to the growth of rural economies and the enhancement of socialized services, and the need to consider regional disparities in the process of developing agricultural economic resilience.