Impacts of Geographical Indications on Agricultural Growth and Farmers’ Income in Rural China

Abstract

Geographical indications (GIs) mitigate information asymmetry in agri-food transactions by providing consumers with origin and quality information. This paper explores the impact of GIs on rural development in China by examining agricultural output and farmers’ income. Utilizing a large county-level dataset and comprehensive official GI information, this study estimates the impact of GIs on agricultural output and rural income using panel-fixed-effects models. The results reveal that GIs significantly boost agricultural added value and rural per capita disposable income. A series of methods, including difference-in-differences, propensity score matching with difference-in-differences, and double machine learning combined with difference-in-differences using random forests verify the robustness of the results. Moreover, by categorizing GIs based on product types, the analysis reveals heterogeneous effects of different GI categories on agricultural growth and income gains for farmers. The research findings in this paper offer valuable insights to inform policymaking aimed at advancing rural development, raising farmers’ incomes, and promoting sustainable agri-food supply chains.