The role of specialization in increasing farmers' income: Horizontal or vertical?

Abstract

Based on the theory of division of labor and specialization, this article attempts to address the problem of “splitting horizontal and vertical division of labor” by innovatively integrating horizontal specialization, vertical specialization, and farmers' income into a unified analytical framework. Using the data for 416 chicken farmers in four districts and counties of Guangdong Province as the sample, the theoretical framework proposed in this article is tested by constructing multiple linear regression models and structural equation models. The results are as follows: Both vertical and horizontal specialization can bolster the income of farmers, but they have different specific mechanisms of action. Vertical specialization promotes agricultural income through the mediating effect of horizontal specialization. It is evident that the discussion of horizontal specialization of farmers should not be separated from the conditions of vertical specialization. The policy effect of emphasizing horizontal specialization alone may be limited. Especially for those farmers who are limited by their own endowments and objective conditions to increase their horizontal specialization level and production scale in the short term, it is more important to promote their vertical specialization level.