High-Quality Development of Chinese Agriculture under Factor Misallocation

Optimizing factor allocation is the premise of promoting high-quality development of agriculture. Based on the panel data of 31 provinces in China from 2004 to 2020, this paper examines the relationship between factor mismatch and high-quality agricultural development. We found that the high-quality development level of China's agriculture shows a state of fluctuation and improvement, but the overall level is relatively low and the inter-provincial difference is expanding. Factor mismatch significantly inhibited the improvement of agricultural high-quality development, and the inhibition effect showed obvious temporal and spatial heterogeneity. We also found that the allocation of factors in extreme cases will lead to a 0.01% inter-provincial difference in the high-quality agricultural development. However, with the optimization and upgrading of the agricultural industrial structure and the improvement of the agricultural science and technology, the inhibitory effect of factor mismatch on high-quality agricultural development is constantly weakening. The above conclusion still holds after a series of robustness tests. The conclusions of this paper enrich the theoretical literature on the influencing factors of high-quality agricultural development, and provide an empirical reference for the policy maker of reducing factor mismatch and promoting high-quality agricultural development.