The Impact of Rural Households’ Part-Time Farming on Grain Output: Promotion or Inhibition?

Abstract

Given the prevalence of part-time farming behaviors in rural households, studying the impact of part-time farming behaviors on grain output is of great practical significance. Using a panel dataset of 5629 Chinese national rural fixed observation point data from 2009 to 2015, this paper used the Propensity Score Matching-Difference in Differences method (PSM-DID) to examine the impact and dynamic effect of rural household’s part-time farming behavior on grain output. In addition, the paper also aims to explore the mechanism of how part-time farming affects grain output by running an OLS in an intermediary effect model. We analyzed the data from two aspects: the effect of rural households’ part-time farming decisions on grain output and the relationship between the income from rural households’ part-time farming and grain output. After accounting for the control variables, the results showed a significant positive correlation between rural households’ part-time farming behavior and grain output, with an influence coefficient of 0.304 tons increase in total grain output. While rural households’ part-time farming behavior inhibited grain output over the short term, it ultimately promoted grain output in the long run. The promotion effect increased with the duration of the rural households’ part-time farming. Moreover, the degree of part-time farming and its impact on grain output are mediated by agricultural labor inputs and agricultural technology inputs. Hence, differences in the employment times of rural households’ part-time farming can lead to varying results in grain output. To improve the efficiency of grain output, this study recommends that the government implement policies that promote orderly rural households’ part-time farming behavior.