Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating Income

Using farm machinery plays a significant role in easing the issue of slowing growth of operating income among farm households in China. Drawing data from CFPS2018, this study adopts a multinomial endogenous switching regression (MESR) to analyze the factors influencing farm households’ choices regar...

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Main Authors: Yuan Hu, Ziyang Zhou, Li Zhou, Caiming Liu
Format: Article
Language:English
Published: MDPI AG 2024-10-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/14/11/1936
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author Yuan Hu
Ziyang Zhou
Li Zhou
Caiming Liu
author_facet Yuan Hu
Ziyang Zhou
Li Zhou
Caiming Liu
author_sort Yuan Hu
collection DOAJ
description Using farm machinery plays a significant role in easing the issue of slowing growth of operating income among farm households in China. Drawing data from CFPS2018, this study adopts a multinomial endogenous switching regression (MESR) to analyze the factors influencing farm households’ choices regarding self-owned farm machinery and outsourced machinery services, as well as their subsequent impact on operating income. The results of the study show that the characteristics of the head of household, family, village, and region have a significant impact on the farm households’ selection of whether to use self-owned machinery or outsourced services. Furthermore, the exclusive use of self-owned farm machinery and the combined use of both self-owned and outsourced machinery substantially enhance farm households’ operating income. An additional analysis indicates that these two types of machinery are complementary, and their combined use generates a superimposed effect that further boosts income. These findings suggest that the combined use of self-owned and outsourced machinery is optimal for farm households who wish to expand their operating income.
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spelling doaj-art-dd505f05006346e080fd6eaa56e664e22025-08-20T01:53:42ZengMDPI AGAgriculture2077-04722024-10-011411193610.3390/agriculture14111936Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating IncomeYuan Hu0Ziyang Zhou1Li Zhou2Caiming Liu3College of Management, Sichuan Agricultural University, Chengdu 611130, ChinaCollege of Management, Sichuan Agricultural University, Chengdu 611130, ChinaCollege of Management, Sichuan Agricultural University, Chengdu 611130, ChinaCollege of Management, Sichuan Agricultural University, Chengdu 611130, ChinaUsing farm machinery plays a significant role in easing the issue of slowing growth of operating income among farm households in China. Drawing data from CFPS2018, this study adopts a multinomial endogenous switching regression (MESR) to analyze the factors influencing farm households’ choices regarding self-owned farm machinery and outsourced machinery services, as well as their subsequent impact on operating income. The results of the study show that the characteristics of the head of household, family, village, and region have a significant impact on the farm households’ selection of whether to use self-owned machinery or outsourced services. Furthermore, the exclusive use of self-owned farm machinery and the combined use of both self-owned and outsourced machinery substantially enhance farm households’ operating income. An additional analysis indicates that these two types of machinery are complementary, and their combined use generates a superimposed effect that further boosts income. These findings suggest that the combined use of self-owned and outsourced machinery is optimal for farm households who wish to expand their operating income.https://www.mdpi.com/2077-0472/14/11/1936self-owned farm machineryoutsourced machinery servicesoperating incomesuperimposed effectmultinomial endogenous switching regression
spellingShingle Yuan Hu
Ziyang Zhou
Li Zhou
Caiming Liu
Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating Income
Agriculture
self-owned farm machinery
outsourced machinery services
operating income
superimposed effect
multinomial endogenous switching regression
title Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating Income
title_full Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating Income
title_fullStr Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating Income
title_full_unstemmed Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating Income
title_short Self-Owned or Outsourced? The Impact of Farm Machinery Adoption Decisions on Chinese Farm Households’ Operating Income
title_sort self owned or outsourced the impact of farm machinery adoption decisions on chinese farm households operating income
topic self-owned farm machinery
outsourced machinery services
operating income
superimposed effect
multinomial endogenous switching regression
url https://www.mdpi.com/2077-0472/14/11/1936
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AT ziyangzhou selfownedoroutsourcedtheimpactoffarmmachineryadoptiondecisionsonchinesefarmhouseholdsoperatingincome
AT lizhou selfownedoroutsourcedtheimpactoffarmmachineryadoptiondecisionsonchinesefarmhouseholdsoperatingincome
AT caimingliu selfownedoroutsourcedtheimpactoffarmmachineryadoptiondecisionsonchinesefarmhouseholdsoperatingincome