The impact of migration on agricultural restructuring: Evidence from Jiangxi Province in China

Abstract

This paper explores the key impacts of migration on agricultural production restructuring in Jiangxi province by considering household farm activities choice and crop acreage adjustment behavior. We used the Heckman model to address the sample selection bias and instrumental variable to deal with the reverse causality problem. The results show that, amid China's unique institutional background, the administrative restrictions on the free flow of labor and land hindered agriculture restructuring, forcing the rural family members left behind to turn to less labor-intensive subsistence grain production instead of more capital-intensive livestock cultivation, or to even abandon their farmland. However, we also find the important role of return migrants in the agriculture modernization process. They can provide both financial and human capital to promote more specialized agricultural production. We propose several suggestions for agricultural restructuring in rural China.