How does agricultural production agglomeration affect green total factor productivity?: empirical evidence from China

Abstract

Economic growth in agriculture is often accompanied by environmental pollution. To overcome this dilemma, agricultural green total factor productivity is essential. The role of agricultural production agglomeration has been studied extensively; however, there is no apparent association between agricultural production agglomeration and agricultural green total factor productivity. We use the non-angular and non-radial super-efficiency slacks-based measure model and the global Malmquist-Luenberger productivity model to assess the agricultural green total factor productivity in 30 Chinese provinces from 2001 to 2019. In addition, we investigate the evolutionary trend, influence relationship, and internal mechanism between agricultural production agglomeration and agricultural green total factor productivity. The results show an inverted U-shaped relationship between agricultural production agglomeration and agricultural green total factor productivity. Heterogeneity analysis finds that this role is more pronounced in provinces located in the Yangtze River economic zone with strong fiscal support for agriculture and high levels of regional economic development. Regarding the mechanism analysis, enhancing green technology progress and the quality of rural human capital leads to an increase in agricultural green total factor productivity. Therefore, this study provides a new perspective on global carbon emission reduction and a theoretical and practical reference for realizing global agricultural green development.

Keywords: Agricultural green development; Agricultural production agglomeration; Global Malmquist–Luenberger productivity; Green total factor productivity; Slacks-based measure model.