Services Input and the Catching-up Process of Agricultural Labor Productivity in China: A New Explanation of Periodical Characteristics of Agricultural Labor Productivity

Abstract

China has been lagging behind leading countries in terms of agricultural labor productivity for a long time.This paper analyzes the catching-U.S.-up process of agricultural labor productivity of China in two stages and focuses on the role of services input in the catching-up process based on a growth accounting framework.It finds that the catching-U.S.-up effect experienced by agricultural labor productivity of China is obvious during the period from 1995 to 2003,but the contribution resulting from the increase in the density of services input is relatively small.And the catching-U.S.-up effect experienced by agricultural labor productivity of China is even more obvious during the period from 2003 to 2009,but the relatively low contribution resulting from the density of services input drags the catching-up process instead.The internal structure analysis of services input indicates that the development of services input in agriculture lags behind omnidirectionally.It is essential to fully realize the importance of services input in order to further improve China's agricultural labor productivity and narrow the development gap between China and leading countries.The solution to the lagging-behind development of China's services input in agriculture lies in the improvement of agricultural finance,agricultural insurance,agricultural marketing,agricultural logistics,agricultural Internet Plus,the financing lease of agricultural machineries,etc.