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38                             华中农业大学学报(社会科学版)                                 (总169 期)


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                                  Rising Labor Costs, Factor Substitution and
                                      Agricultural Total Factor Productivity




                                     GONG Binlei, XIAO Yayun, XU Jun, YUAN Lingran

                    Abstract  With the advancement of urbanization and industrialization in China, a large number of
                agricultural  labor  forces  have  transferred,  providing  an  important  driving  force  for  the  continued  eco⁃
                nomic growth.However, rising labor costs may have a negative impact on agricultural total factor produc⁃
                tivity.From the perspective of factor substitution, areas and crops where machinery is difficult to replace
                labor should be more affected by the increase in labor prices.This article studies the above issues based
                on unbalanced panel data of 2463 counties in China from 1993 to 2015.The empirical results indicate that
                rising labor costs do have a significant negative impact on China′s agricultural total factor productivity.In
                order to characterize factor substitution, especially the role of machinery substituting for labor, this ar⁃
                ticle explores the effects of different slopes and different crops.The empirical results show that, on the
                one hand, in areas with a high proportion of sloping farmland, it is more difficult for machinery to replace
                labor, resulting in a greater negative impact on agricultural total factor productivity.On the other hand,
                compared with food crops, it is more difficult for machinery to replace labor in the production of cash
                crops.Therefore, rising labor costs will lead to a grain-oriented planting structure.Considering that cash
                crops are relatively efficient, this will lead to the overall decline in agricultural total factor productivity.
                    Key words  labor cost; agricultural total factor productivity; factor substitution

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