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Impacts of work attitude of outsourcing services on food losses: evidence from rice harvest in China

In: International Food and Agribusiness Management Review
Authors:
Xue Qu PhD candidate, Department of Agricultural and Resource Economics, The University of Tokyo, 1-1-1 Yayoi, Bunkyo-ku, Tokyo 113-8657, Japan.

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Daizo Kojima Associate Professor, Department of Agricultural and Resource Economics, The University of Tokyo, 1-1-1 Yayoi, Bunkyo-ku, Tokyo 113-8657, Japan.

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Laping Wu Professor, College of Economics and Management, China Agricultural University, No.17 Tsinghua East Road, Haidian District, Beijing 100083, China P.R.

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Mitsuyoshi Ando Professor, Department of Agricultural and Resource Economics, The University of Tokyo, 1-1-1 Yayoi, Bunkyo-ku, Tokyo 113-8657, Japan.

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Open Access

This study uses survey data from 651 farmers in China to study the impacts of moral hazard on rice harvest losses and we further study the differences of the impacts across farm scales. The results show that large-scale farms have lower harvest losses and the service providers have more serious attitude when harvesting. After addressing the endogeneity of moral hazard using instrumental variable approach, moral hazard increases harvest losses. However, this impact diminishes as farm size increases. These findings demonstrate the need to reduce moral hazard by increasing farm size, introducing intermediaries, and written contracts, etc.

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