Year: 2025
Type: article
Abstract: The extension of agricultural industry to manufacturing and service industry is the development direction of the rural industrial integration. Empirical evidence demonstrates that industrial chain extension and reinforcement significantly enhance value creation. This research examines how industrial integration influences the value-added processes of the industrial chain, focusing on agricultural industry transformation. We discuss the industrial integration and its impact on value creation using a combination of theoretical and empirical methods. We develop a three-sector production function by extending the classical two-sector function. Empirical analysis verified the consistency with the theoretical model from both Chinese data and international experiences. The results represent that the integration model, planting structure, and factor productivity have elastic effects on the industrial chain’s value creation. ① The agricultural industry exerts a significant spillover effect on the manufacturing industry, and the manufacturing industry, in turn, has a markedly substantial spillover effect on the service industry. ② Factors marginal productivity in the agricultural and manufacturing industries is higher than that of the service industry. ③ The integration model, the planting structure, and the quality of input factors exert significant external impacts on the industrial chain’s value creation. ④ There are structural contradictions and regional imbalances in industrial integration. These findings suggest that optimizing the structure of agricultural production, promoting manufacturing, and fostering technological progress can create industrial chain value and support high-quality industrial development.
Authors: Yufeng Hu, Zenglai Li, Youqiang Ding
Institution: Tongling University
Language: English
Domain: Life Sciences
Open Access status: gold
Estimated APC paid: $1,890
OpenAlex ID: W4411116429