The Impact of Labor Input on Crop Yield and Price in China

Abstract

this article intend to measure the impact of labor input on crop yield and price in China, based on the complex economic background, such as China agricultural price increasing. All the data in this article is from National Agricultural Product Cost Data Compilation (1990-2016), including 13 agricultural products. The authors have tested the time series stability of labor cost in unit weight of agricultural product, cost price, producer price; and we analyze the relationship between labor price and producer price. The results show that there is the stationary relation between labor cost in unit weight of agricultural product and cost price, but also it is stationary between the agricultural cost price and producer price or agricultural purchase price. Based on the results, through derivation, the author found that the agricultural producer price and the labor price are directly relative. Thus would provide a new method for government to estimate agricultural purchase price, in the same time, the authors give some suggestion on the relevant policies of agricultural producer price determining and the labor price policy, such as the salary management, etc..