Mechanism and Measurement of the Effects of Industrial Agglomeration on Agricultural Economic Resilience

Mechanism and Measurement of the Effects of Industrial Agglomeration on Agricultural Economic Resilience

21 February 2024 | Ruikuan Yao, Zhisheng Ma, Haitao Wu * and Yifeng Xie
This study investigates the impact of agricultural industrial agglomeration on agricultural economic resilience, focusing on its mechanisms and regional variations. The authors develop an analytical framework that integrates the concept of "resilience" into agricultural economics, examining the influence of agglomeration on income enhancement and cost reduction. Using panel data from 30 provincial-level regions in China over the period 2006-2021, the research empirically assesses the impact, underlying mechanisms, and regional variations of agricultural industrial agglomeration on agricultural economic resilience. The findings indicate that agricultural industrial agglomeration significantly boosts agricultural economic resilience through two primary channels: enhancing socialized services and improving agricultural production efficiency. The positive influence is particularly pronounced in major grain-producing regions, enhancing capabilities for reconstruction, reinvention, adjustment, and adaptation. The study concludes with recommendations aimed at strengthening agricultural economic resilience, emphasizing the critical role of agricultural industrial agglomeration, its contribution to rural economic growth, and the need to address regional disparities in resilience governance.This study investigates the impact of agricultural industrial agglomeration on agricultural economic resilience, focusing on its mechanisms and regional variations. The authors develop an analytical framework that integrates the concept of "resilience" into agricultural economics, examining the influence of agglomeration on income enhancement and cost reduction. Using panel data from 30 provincial-level regions in China over the period 2006-2021, the research empirically assesses the impact, underlying mechanisms, and regional variations of agricultural industrial agglomeration on agricultural economic resilience. The findings indicate that agricultural industrial agglomeration significantly boosts agricultural economic resilience through two primary channels: enhancing socialized services and improving agricultural production efficiency. The positive influence is particularly pronounced in major grain-producing regions, enhancing capabilities for reconstruction, reinvention, adjustment, and adaptation. The study concludes with recommendations aimed at strengthening agricultural economic resilience, emphasizing the critical role of agricultural industrial agglomeration, its contribution to rural economic growth, and the need to address regional disparities in resilience governance.
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