Substitution Of Capital For Labor:Rural Households’ Agricultural Productive Investment Behavior

China has entered the stage of "Lewis turning point",in the background of "demographic dividend" regression and "rising labor costs",relative factor price changes "capital labor substitution " induced by the changes of relative factor price has become the trend of factor substitution.Based on the theory of induced technological innovation,this paper constructs the decision model of farmers.Based on the survey data of 1056 sample households in the 9 provinces of China,this paper analyzes the theoretical logic and empirical facts of rural households’ agricultural productive investment behavior.In order to test the theoretical hypothesis and research inference,this paper use Probit model and OLS estimation to test whether the rural households have productive investment behavior and the value of agricultural machinery and facilities.Further analysis of the results,to test the explanatory power of the theory of induced innovation in the productive investment behavior of farmers.The research shows the following points:(1)the price of labor is the key variable,non-agricultural employment,non-agricultural employment and labor weakness can promote agricultural production investment behavior;Wage income does not have "income effect",but the negative effect of "opportunity cost of farming";(2)Based on the heterogeneity of rural households,present different factor endowment,behavior ability,comparative advantages.The scale of land,land ownership land endowment,representative property strength,more excellent,the greater the intensity of agricultural production investment,the greater the tendency;(3)the introduction of agricultural production characteristics,found that seasonal agricultural production lead time employment imbalance induced by high cost,hired than mechanical supervision difficult problem,the farmers tend to use machinery to replace labor".Therefore,it is necessary to match the scale of farmland of heterogeneous rural households and realize the transformation of factor structure of "capital substitution labor" so as to achieve the optimal efficiency of agricultural production.Further discussion shows,from the measurement results: one is "farmers in theMulti-objective decision of profit maximization and risk minimization,minimizing investment","capital labor substitution" behavior;two is the agricultural production investment of the optimal scale of land is 100 acres.At this critical value,there appears to be "self purchasing machinery" and "service outsourcing" behavior differentiation.Three is to increase the strength of the right to land ownership,encourage farmers to invest in the expected,there are important policy implications.Based on the analysis of above theory foundation and experience,put forward three suggestions: Firstly,is to optimize the agricultural machinery purchase subsidies,classification support agricultural business entities;Second,to activate various agricultural production factors,transformation of traditional agriculture to modern agriculture;Last but not least,is developing new formats of agriculture,encourage and support large-scale service providers.