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Sustainability 2016, 8(1), 8; doi:10.3390/su8010008

Did the Establishment of Poyang Lake Eco-Economic Zone Increase Agricultural Labor Productivity in Jiangxi Province, China?

1
and
2,*
1
School of Economics, Jiangxi University of Finance and Economics, 169 Shuanggang East Road, Nanchang 330013, China
2
Center for Regulation and Competition, Jiangxi University of Finance and Economics, 169 Shuanggang East Road, Nanchang 330013, China
*
Author to whom correspondence should be addressed.
Academic Editor: Marc A. Rosen
Received: 10 December 2015 / Revised: 18 December 2015 / Accepted: 21 December 2015 / Published: 24 December 2015
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Abstract

In this paper, we take the establishment of Poyang Lake Eco-Economic Zone in 2009 as a quasi-natural experiment, to evaluate its influence on the agricultural labor productivity in Jiangxi Province, China. The estimation results of the DID method show that the establishment of the zone reduced agricultural labor productivity by 3.1%, lowering farmers’ net income by 2.5% and reducing the agricultural GDP by 3.6%. Furthermore, this negative effect has increased year after year since 2009. However, the heterogeneity analysis implies that the agricultural labor productivities of all cities in Jiangxi Province will ultimately converge. We find that the lack of agricultural R&D activities and the abuse of chemical fertilizers may be the main reasons behind the negative influence of the policy, by examining two possible transmission channels—the R&D investment and technological substitution. Corresponding policy implications are also provided. View Full-Text
Keywords: Poyang Lake Eco-Economic Zone; agricultural labor productivity; DID method; R&D on agriculture Poyang Lake Eco-Economic Zone; agricultural labor productivity; DID method; R&D on agriculture
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Wu, T.; Wang, Y. Did the Establishment of Poyang Lake Eco-Economic Zone Increase Agricultural Labor Productivity in Jiangxi Province, China? Sustainability 2016, 8, 8.

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