Research on the Influencing Factors of the Added Value of the Primary Industry

Abstract

This paper takes the added value of China's primary industry from 1978 to 2021 as the research object, based on the Cobb-Douglas production function theory, using the cointegration analysis and Granger causality test method, systematically examines the impact of the number of employees in the primary industry, the total power of agricultural machinery and the total sown area of crops on the added value of the primary industry. The results show that the changes of the total power of agricultural machinery and the total sown area of crops have a significant positive impact on the added value of the primary industry, in which the added value of the primary industry changes 0.3922% in the same direction for every 1% change of the total power of agricultural machinery; For every 1% change in the total sown area of crops, the added value of the primary industry changes by 0.5869% in the same direction. However, the change of the number of employees in the primary industry has no significant impact on the added value of the primary industry, which reflects the increasing degree of agricultural mechanization in China and the realistic trend of labor transfer to the secondary and tertiary industries. Based on the empirical results, this paper puts forward some policy suggestions, such as increasing investment in agricultural mechanization, optimizing land use structure, strengthening agricultural infrastructure construction, deepening agricultural science and technology research and development and talent support, and formulating regional agricultural development strategies according to local conditions. This paper provides an empirical basis for understanding the growth mechanism of China's primary industry and provides a reference for formulating relevant agricultural policies.