Agricultural Labor Productivity Research Articles

How can information and communication technologies influence farmers’ agricultural income and labor productivity? Micro evidence from China

ABSTRACT Based on a panel data from the National Rural Fixed Point Survey of China, this study explored the effects of information and communication technologies (ICTs) on agricultural income and labour productivity of Chinese farmers using fixed effects models and two-stage least square estimations. The results indicate that the deployment of mobile 3 G led to a reduction in both farmers’ agricultural income and agricultural net income by CNY 560.64 and 331.2, respectively, because ICTs prompted farmers to engage in off-farm employment, thereby allocating less time and input to farming activities. Village access to Internet and 3 G increased farmers’ labour productivity, measured by agricultural net income per day, with increments of CNY 2.09 and 11.15, respectively. ICTs also decreased farmers’ grain production, production cost, fertilizer use, and increased grain productivity. Furthermore, ICTs exhibited a spill-over effect, with non-users in Internet-connected villages demonstrating higher labour productivity compared to those in villages without Internet access. These results imply that agricultural labour productivity can be enhanced by employing ICTs for China and countries with small-scale farms. Nonetheless, greater attention should be paid to the potential trade-offs between the income growth facilitated by ICTs in rural out-migration and the decline in agricultural income and grain production.

Africa's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms

Abstract Recent growth accelerations in Africa are characterized by declining shares of the labor force employed in agriculture, increasing labor productivity in agriculture, and declining labor productivity in modern sectors such as manufacturing. To shed light on this puzzle, this study disaggregates firms in the manufacturing sector by average size, using two newly created firm-level panels covering Tanzania (2008–2016) and Ethiopia (1996–2017). The analysis identifies a dichotomy between larger firms with superior productivity performance that do not expand employment and small firms that absorb employment but do not experience much productivity growth. Large, more productive firms use highly capital-intensive techniques, in line with global technology trends but significantly greater than what would be expected based on these countries’ income levels or relative factor endowments.

Productivity Paradox in Africa: Does Digitalization Foster Labor Productivity in African Economies?

AbstractHow the advancement of information and communications technologies (ICT) and digitalization affect labor productivity is subject of an ongoing debate. While parts of the literature find the expected positive effects, other studies have found no effect, resulting in the so-called productiviy paradox. As most of the studies have focused on economically advanced economies such as OECD countries, evidence for less developed economies has been sparse. We use a digitalization composite index from a balanced panel of 40 Sub-Saharan African (SSA) economies, using data from 2006 to 2021, to assess the effect of digitalization on aggregate labor productivity in SSA economies. We employ generalized least squares (GLS) and system generalized methods of moments (GMM) methods to capture the effects of digitalization on labor productivity levels in agriculture, manufacturing, and service sectors. Our results show a weak association between digitalization and overall labor productivity. However, when sectors are analyzed separately, digitalization has a positive effect on labor productivity in agriculture and manufacturing sectors, whereas we find evidence for the productivity paradox in the service sector, with even a negative effect of digitalization on labor productivity.

Exploring the Evolutionary Characteristics of Food Security in China and the United States from a Multidimensional Perspective.

Against the backdrop of global warming, intensifying regional conflicts, deglobalization, and the spread of diseases, global food security is facing severe challenges. Studying the food security situation in China and the United States in depth can provide practical experience for formulating food security policies for countries around the world and promoting global food security governance. On the basis of a meticulous review of the evolving connotations of food security, this study adopts six dimensions-quantity security, quality security, circulation security, economic security, ecological resource security, and policy security-as breakthrough points to construct a framework consisting of food security evaluation indicator system comprising 29 specific indicators. The CRITIC-MEREC-MARCOS model is applied to evaluate the status of food security in China and the United States from 2000 to 2022, while the obstacle degree model (ODM) model is utilized to identify factors impeding food security between the two countries. The results indicate that the level of food security in China has shown slight fluctuations initially, followed by a steady upward trend. The gap with the United States is continuously narrowing. However, significant differences between China and the United States still exist in terms of economic security, ecological resource security, and policy security. Furthermore, due to the limited productivity of agricultural labor, scarcity of water and soil resources, and low efficiency in the use of fertilizers and pesticides, China's food security is subject to economic and environmental constraints. The restrictions imposed by economic security and ecological resource security on China's food security are showing an increasing trend year by year. For the United States, with the obstruction of grain exports and the increasing frequency of drought disasters, the impact of circulation security and ecological resource security on food security is becoming increasingly prominent. In the future, China and the United States should join hands to address challenges, actively promote international cooperation in food security, and drive sustainable development for humanity.

The Urban-rural Income Gap, Urbanization, the Upgrading of Industrial Structure, and Agricultural Labor Productivity

Agricultural labor productivity reflects the relationship between labor factor input and economy in the agricultural industry, and improving agricultural labor productivity is an important way to achieve agricultural modernization and high-quality agricultural development. Based on the VAR model and Granger causality test, this paper conducts an empirical analysis of the impact of urban-rural income gap, urbanization, industrial structure upgrading, and agricultural labor productivity in China from 1981 to 2020, and concludes that there is a long-term cointegration relationship between urban and rural income gap, urbanization and industrial structure upgrading and agricultural labor productivity. In the long run, the urban-rural income gap and industrial structure upgrading have a positive impact on agricultural labor productivity. Urbanization has a negative impact on the improvement of agricultural labor productivity, so relevant suggestions are given.

Study of regional characteristics of agricultural labor productivity: problems, trends, main directions of growth

The results of a study of regional characteristics of labor productivity of workers engaged in agricultural production are presented. The criteria characterizing labor productivity in value and physical terms have been studied. An assessment is made of the efficiency of using production factors (land, labor, capital) in agricultural organizations in the context of a study of regional characteristics of agricultural labor productivity. The results obtained can be used by government agencies in the formation of regional agricultural policy and program documents, including sections on labor productivity in the agroindustrial complex. For agricultural organizations, scientific material may be of interest when planning and forecasting labor indicators, and assessing the effectiveness of activities.

Impact of global warming on labor productivity in the Chengdu-Chongqing economic circle, China

In recent years, the Chengdu-Chongqing Economic Circle (CCEC) has experienced frequent heat events, significantly impacting labor productivity. The CCEC is an important economic growth pole in western China. Therefore, an in-depth study of the impact of heat stress on labor productivity holds great significance for climate change adaptation and enhancing economic efficiency. Based on the relationship between the wet-bulb globe temperature (WBGT) and labor productivity of different industries, the labor productivity loss caused by heat in the CCEC was estimated using the observation data of the meteorological station and the projection results of the BCC-CSM2-MR model from the Coupled Model Intercomparison Project Phase 6 (CMIP6). The results showed that the impact of heat on the labor productivity of different industries in the CCEC mainly occurs from June to August, with the largest impact on agriculture, followed by industry, and the smallest impact on service sectors. Losses from heat stress to labor productivity in agriculture, industry, and services showed a significant increasing trend from 1980 to 2020 but a decreasing trend in comprehensive labor productivity loss. From 2020–2100, labor productivity losses in different industries due to heat stress show an increasing and then decreasing trend in the low emissions scenario, productivity losses in the medium emissions scenario are characterized by an increasing and then sustained change, and labor productivity losses in the high emissions scenario show a sustained increasing trend from 2020. By the end of the 21st century, the increase in labor productivity losses across different industries under the high emission scenario is approximately 15%–23%, and the large value center shifts slightly to the west. In most areas, the losses of agricultural, industrial, service, and comprehensive labor productivity exceed 45%, 32%, 20%, and 24%, respectively.

Allocation of Female Talent and Cross-Country Productivity Differences

Abstract Cross-country disparities in labour productivity are more pronounced in agriculture than other sectors. I posit that the misallocation of female talent between sectors distorts productivity and formalise a general equilibrium Roy model with gender-specific frictions. If female workers encounter greater barriers in non-agricultural sectors, female workers who are better skilled at non-agricultural jobs may select into the agricultural sector. Analysis of data from sixty-six countries reveals that low-income countries have higher frictions against female workers in non-agricultural sectors. By aligning these frictions with those of the United States, agricultural labour productivity sees gains of 2.5%–7.6%, with GDP per capita rising by 0.5%–1.5% on average.

Can Migrant Workers Returning Home for Entrepreneurship Increase Agricultural Labor Productivity: Evidence from a Quasi-Natural Experiment in China

One of the effective ways to crack the “Three Rural Issues” and promote rural revitalization is to improve agricultural labor productivity (ALP). However, at this stage, improving China’s ALP is still facing many obstacles and bottlenecks. Promoting migrant workers returning home for entrepreneurship is an important breakthrough point for solving this problem. This paper regards the pilot policy of migrant workers returning home for entrepreneurship as a quasi-natural experiment and empirically investigates the influence of migrant workers returning home for entrepreneurship on ALP and explores its potential mechanism and heterogeneity using county area panel data from 2011–2019. It found the following: Firstly, the policy of migrant workers returning home for entrepreneurship significantly increases ALP. Secondly, migrant workers returning home for entrepreneurship indirectly leads to a rise in ALP through the promotion of agricultural mechanization production. Thirdly, the heterogeneity test demonstrates that migrant workers returning home for entrepreneurship purposes have a significant influence in enhancing ALP in the eastern areas, plains areas and non-agricultural strong areas. The findings of this paper not only provide an important real-world basis for the government to further support migrant workers returning home for entrepreneurship but also provide useful policy insights for the modernization and development of agriculture and rural areas.

Farm Labour Productivity of Major Crops of Punjab

Farm Labour Productivity of Major Crops of Punjab

Assessing Agricultural Impact on Greenhouse Gases in the European Union: A Climate-Smart Agriculture Perspective

With the increasing concern about climate change and its impacts on agriculture, understanding the dynamics of greenhouse gas (GHG) emissions in the European Union (EU) agricultural sector is essential for devising effective mitigation strategies. This study aims to assess the impact of agriculture on GHG within the EU and to examine how climate-smart agricultural practices can affect these emissions. The research investigates the complex relationship between agricultural activities and GHG emissions within the European Union during the period of 2017–2022 using structural equation modeling based on data from Eurostat and the European Commission. Furthermore, the study examines the influence of the digital economy on labor productivity in agriculture, recognizing the pivotal role of digital technologies in fostering climate-smart agricultural practices. The findings unveil significant positive influences encompassing the digital economy, agricultural productivity, agricultural output, and GHG emissions, underscoring the imperative of integrating climate-smart methodologies into agricultural frameworks. However, the influence of digital technologies is not significant as a result of opposing forces. Digital technologies exert positive indirect influences by increasing agricultural productivity and agricultural output, while they have negative influences by improving production processes through automation and precision agriculture. Digitalization and climate-smart agricultural practices have a significant potential to improve the efficiency and sustainability of the agricultural sector, contributing to food security and environmental protection by reducing GHG emissions. This study highlights the EU’s potential to achieve its environmental objectives through the reduction of GHG emissions and the enhancement of resilience within the agricultural sector, emphasizing the necessity of adopting climate-smart strategies.

Sustainability assessment of the agriculture sector using best worst method: Case study of Baltic states

AbstractSustainable agriculture development holds significant global and regional importance, particularly within the Baltic countries. On a global scale, it is a critical strategy for meeting the escalating demand for food while simultaneously mitigating the adverse environmental and social consequences associated with agricultural practices. In the context of the Baltic nations, where agriculture constitutes a substantial portion of the economy, the adoption of sustainable farming practices is imperative for ensuring the sector's long‐term viability, safeguarding the integrity of the region's distinct ecosystems, and guaranteeing food security for their populations. A comprehensive understanding of the opportunities and challenges facing Baltic agriculture is impeded by a notable research deficiency concerning the intricate and distinct problems facing these nations. The use of indicators to assess economic sustainable agriculture indicators plays a pivotal role in guiding agricultural practices. By taking social and environmental variables into account, these metrics quantify the economic viability of farming. Consequently, these indicators empower policymakers and farmers alike to make well‐informed decisions, striking a balance between profitability and resource conservation, thereby contributing to the enduring sustainability of agriculture in the Baltic countries and beyond. Notably, a comprehensive assessment of economic sustainability in agriculture identified 31 indicators, which were refined to 9 through expert consensus using the Delphi method. Subsequently, the best worst method was applied to rank these indicators. The results indicate that investment intensity, diversification of income, agricultural labor productivity, and market access emerge as the most crucial indicators for ensuring economic sustainability in agriculture.

Cooperation of small and medium in agriculture of the Republic of Kazakhstan

The process of uniting small and medium-sized businesses in the agro-industrial complex into agricultural cooperatives is very relevant for the Republic of Kazakhstan, given the small-scale nature of agricultural production and the high share of households in the total volume of agricultural production. gross agricultural output and, accordingly, low labor productivity in agriculture. The purpose of the study is to study the development of agricultural cooperation in Kazakhstan and identify problems hindering the development of the cooperative movement, and suggest directions for further development in the field of cooperation in the country. To study processes and phenomena in the field of organizational and economic relations, various methods were used, such as analysis and synthesis, the use of systematic and logical approaches to the study of trends in the development of agricultural cooperation. The essence of the efficiency of cooperative formations functioning is formulated. The world and domestic experience of agricultural cooperation development has been studied, which allowed to identify the main prerequisites for the development of small and medium-sized business in the agro-industrial complex of the Republic of Kazakhstan. The article presents existing problems that impede their development, and in conclusion, the authors offer recommendations on measures of state regulation and support for the development of agricultural cooperation in the Republic of Kazakhstan. It is necessary, first of all, to direct efforts to the development of production cooperation of small and medium-sized farms, which have the opportunity to organize joint production of agricultural products, use of land resources, agricultural machinery, and introduce advanced growing technologies. agricultural products in order to preserve the fertility of agricultural land and use a unified scientifically based crop rotation system. All this will ultimately increase the volume of agricultural production, animal productivity, increase crop yields and labor productivity.

Understanding the distribution patterns and underlying mechanisms of non-grain use of cultivated land in rural China

How to control the non-grain use of cultivated land (NGUCL) for the simultaneous development of food security, rural revitalization, and ecological protection has been a major topic of global concern. However, insufficient understanding of the pattern and its underlying mechanisms has posed major challenges for related policy-making. To bridge this gap, this study established a theoretical framework for NGUCL analysis and employed quantitative methods to reveal the NGUCL pattern and its mechanisms. The key finding is that there was a core–edge model of NGUCL distribution pattern from the suburbs to the remote suburbs; this was determined by a policy–market–site coupling mechanism and non-grain market location enhanced mechanism. The foremost contribution of this study is that it presents a global understanding of the core–edge model using a coexisting pattern analysis on NGUCL from the suburbs to the remote suburbs based on our understanding of non-grain growing behaviors. To strengthen control of NGUCL, we propose implementing regionally differentiated policies for cultivated land protection together with spatial planning for crop growing. We argue that the key to policy improvement is to maximize agricultural labor productivity in accordance with market demand. The findings and suggestions of this study are significant for China and other regions to promote NGUCL control and cultivated land protection.

Assessing the potential of ICT to increase land and labour productivity in agriculture: Global and regional perspectives

AbstractIncreasing agricultural productivity in low‐ and middle‐income countries (LMICs) is an important channel for reducing poverty and food insecurity. Information and communication technologies (ICT) have the potential to boost agricultural productivity by lowering transaction costs and enhancing access to information. Even though there are several micro‐level studies analysing the effects of ICT on agricultural productivity, there is scant research addressing the role of ICT in agricultural productivity at the global and regional levels. Using data from 86 countries for the period 2000 to 2019 and utilising a fixed effect panel regression with a feasible generalised least square approach, we find that globally there is a positive and significant association between ICT uptake and both land and labour productivity in agriculture. In each case, however, the magnitude of the effect is much smaller than other important determinants, such as human capital, access to inputs or environmental factors. At the regional level, the relationship between ICT uptake and land productivity is not significant in Africa and Asia, while we find a significant effect on labour productivity. This finding indicates that while ICT can provide valuable information and tools for land management, the effect on land productivity might be less immediate in these regions. Finally, we revisit the question of whether ICT expansion increases agricultural productivity gaps between high‐income nations and LMICs. In contrast to previous research, this study does not find significant differences in the effects of ICT on land and labour productivity between higher‐income and lower‐income countries.

Результативность и эффективность государственной поддержки аграрного производства

The article considers the volume of budget allocations, results and effectiveness of state support. Its size increased 2.1 times in 2013-2022, which contributed to a 2.6-fold increase in agricultural production, including 3.2 times in agricultural organizations and farms. Labor productivity in agriculture increased by 12.2%, value added in agriculture increased by 71.5%, wages – by 63.2%. Agricultural exports have increased sharply and imports of agricultural products and food have decreased, food security indicators for most food products have been achieved. The effectiveness of state support has increased: for 2013-2022, production per 1 RUB allocations increased by 19.4%, including in agricultural organizations and farms – by 50.0%, the share of profitable organizations increased by 9.1 percentage points, the level of profitability of agricultural organizations, taking into account subsidies, increased by 11.0 percentage points, excluding subsidies – by 18.0 percentage points. However, the production of some types of agricultural products is unprofitable. To increase the profitability of production, it is necessary to improve the mechanism of state support for agricultural industries.

Analytical assessment of the machinery use efficiency in the technology of crop products production

The crop growing industry focuses, first of all, on highly productive and efficient machinery that meets all modern requirements of agricultural production. This machinery can significantly increase the productivity of agricultural labor and create comfortable working conditions. Digital transformation and digitalization of crop production requires introducing highly intelligent machinery and technologies for crop cultivation into the agro-industrial complex, which, in turn, necessitates requirements for the growth of intellectual abilities of agricultural workers. The current prices for modern machinery and technologies are very high; for many enterprises it is not possible to purchase them, therefore the relevance of state support from federal sources is very necessary. There is a negative trend in the numerical reduction of machinery in the region under study, as a result of which there is an increase in the specific load per unit of machinery, and that leads to accelerated wear. As a result, production volumes in crop growing are being reduced. Calculations show that the degree of exploitation of the combine harvester fleet in the region is slightly higher than that of the tractor fleet, so these trends should be taken into account in the process of planning the volume of investments for their acquisition.

Natural-resources-seeking FDI and employment opportunities in developing countries: a temporal perspective

PurposeThis study aims to analyze the short-, medium- and long-term impacts of natural-resources-seeking foreign direct investment (FDI) in the form of foreign multinational enterprise (MNE) land acquisitions on agricultural labor productivity in developing countries. The authors analyze if these land acquisitions disrupt fair and decent rural labor productivity or if the investments provide opportunities for improvement and growth. The influence of different country characteristics, such as economic development levels and governmental protection for the rural population, are acknowledged.Design/methodology/approachThe study analyzes 570 land acquisitions across 90 countries between 2000 and 2015 via a generalized least squares regression. It distinguishes short- and long-term implications and the moderating role of a country’s economic development level and government effectiveness in implementing government protection.FindingsThe results suggest that natural resource-seeking FDI harms agricultural labor productivity in the short term. However, this impact turns positive in the long term as labor markets adjust to the initial disruptions that result from land acquisitions. A country’s economic development level mitigates the negative short-term impacts, indicating the possibility of finding alternative job opportunities in economically stronger countries. Government effectiveness does have no influence, presumably as the rural population in which the investment is partaking is in many developing countries, not the focus of governmental protectionism.Research limitations/implicationsThe findings provide interesting insights into the impact of MNEs on developing countries and particularly their rural areas that are heavily dependent on natural resources. The authors identify implications on employment opportunities in the agricultural sector in these countries, which are negative in the short term but turn positive in the long term.Practical implicationsMoreover, the findings also have utility for policymakers. The sale of land to foreign MNEs is not a passive process – indeed, developing country governments have an active hand in constructing purchase contracts. Local governments could organize multistakeholder partnerships between MNEs, domestic businesses and communities to promote cooperation for access to technology and innovation and capacity-building to support employment opportunities.Social implicationsThe authors urge MNE managers to establish new partnerships to ease transitions and mitigate the negative impacts of land acquisitions on agricultural employment opportunities in the short term. These partnerships could emphasize worker retraining and skills upgrading for MNE-owned land, developing new financing schemes and sharing of technology and market opportunities for surrounding small-holder farmers (World Bank, 2018). MNE managers could also adopt wildlife-friendly farming and agroecological intensification practices to mitigate the negative impacts on local ecosystems and biodiversity (Tscharntke et al., 2012).Originality/valueThe authors contribute to the debate on the positive and negative impact of FDI on developing countries, particularly considering temporality and the rural environment in which the FDI is partaking.

Economic consequences of climate change impacts on South Asian agriculture: A computable general equilibrium analysis

AbstractSouth Asia is one of the most vulnerable regions of the globe in terms of climate change, with agriculture the most affected economic sector of the region. This study employs an environmental Global Trade Analysis Project model to simulate the impact of an average global 2°C temperature increase by 2050, with a focus on South Asian countries. The economic costs of climate change in relation to crop productivity losses due to increasing temperature, land productivity losses caused by rising sea levels and heat stress‐induced agricultural labour productivity losses are assessed based on model simulations. The results show that the unfavourable climate change impacts on agricultural productivity (crop, land and labour) will reduce food production and create upward pressure on food prices. This will lead to a reduction in food consumption at the household level, threatening future food security in the region. The results further predict a contraction in all South Asian economies by 2050, due to adverse climate change impacts on the agricultural sector. In addition, out of the three climate change damage factors considered, labour productivity causes the greatest economic losses, while land productivity losses caused by rising sea levels impact the least. The study also found that low‐income countries would suffer most severely due to the impacts of climate change on the agricultural sector, while high‐income countries would be impacted the least.

Exploring the Drivers of Microregional Agricultural Labor Productivity: Empirical Insights from Portugal

Understanding the factors that influence agricultural productivity is critical for promoting sustainable food production, economic growth, and rural livelihoods. Despite the fact that numerous theoretical and empirical studies on agricultural productivity have been conducted in recent decades, few have focused on the local geographical level, investigating the impact of specific agroecological conditions and farming systems. The current study examines the geographical micro-level determinants of labor productivity for all farmers and agricultural holdings in Portugal by estimating the parameters of an extended Cobb–Douglas production function and using panel data techniques. In general, the findings support major findings in empirical and theoretical literature that show a positive relationship between labor productivity and farm size, mechanization, irrigation, and human capital. Labor productivity is higher in regions with a higher prevalence of Mediterranean farming systems, such as orchards, vineyards, and horticultural crops, possibly due to crop suitability and ancient specialized knowledge, implying that a shift in farming techniques and crop selection, in balance with local natural and social specificities, may increase agricultural output and income for rural communities.