The purpose of this paper is to clarify the substitution effect between agricultural machinery and labor in China. China's agricultural mechanization is proposed by the government after the establishment of new China and it has been evolved since the people's commune period. Compared with the average level in the world, the agricultural mechanization level of China is still low. In order to achieve "agricultural modernization" earlier, improving agricultural productivity has become an urgent task to the labor-saving machinery. In brief, let the mobile rural labor force transfer to other industries and restructuring agricultural production structure which are necessary based on the Mechanization. For this purpose, by using data from China Statistical Yearbook and empirically analyses the substitution effect between agricultural machinery and labor. As a result, with the increase in labor wages, Marginal rate of substitution of labor for mechanical has gone up. Marginal rate of substitution is 0.425〜1.226 from 1983 to 2009, in China.
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