The spatial effect of factor market distortion on green agriculture development in China

Abstract

ABSTRACT Modern green agriculture is a shortcoming problem in China’s current pursuit of all-round development. This article analyzes the current obstacles to the development of green agriculture in China, and explains the regional differences in the development of green agriculture from the perspective of the factor market. Using the data of 31 provinces in China from 2009 to 2019 as a research sample, this paper analyzes the distortion of China’s factor market and the status quo of green agriculture development. The results of spatial heterogeneity analysis and spatial econometric regression show that: (1) The degree of distortion of labor factors (maximum value increased from 7.887 in 2009 to 10.251 in 2019) and capital factors (maximum value increased from 3.782 in 2009 to 10.547 in 2019) across the country has been increasing, the utilization of agricultural fertilizers and pesticides has not been effectively improved. (2) The use levels of both chemical fertilizers and pesticides in agricultural production show spatial correlation, and the spatial correlation of pesticide use is more significant. (3) Both labor market distortion and capital market distortion have an inverted U-shaped effect on the use of chemical fertilizers and pesticides, verifying the mechanism of factor market distortions affecting the development of green agriculture in China. Therefore, in the process of promoting the development of green agriculture in China, the rationality of the supply and demand structure of the factor market is a significant factor that policymakers must consider. Only by stimulating the vitality of labor and capital elements in rural areas, and forming a complete element price mechanism, can it help eliminate obstacles to agricultural green development.