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Technological change and agricultural household income distribution: theory and evidence from China

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  • Yifu Lin, Justin

Abstract

This article applies a general equilibrium model to analyse the impact of new rice technology on household income and uses agricultural household survey data from China to test the implications of this model. It is shown that, when a new rice technology becomes available, the adopting household will reallocate resources to increase rice production and reduce the production of other goods. Meanwhile, the non‐adopting households will do the opposite. Thus, the income from rice becomes increasingly concentrated in the adopting households and income from non‐rice becomes increasingly concentrated in the non‐adopting households. If only one source of income is examined, the introduction of new rice technology increases the inequality of income distribution in rural areas. But, if the total household income is examined, the distributional inequality is mitigated.

Suggested Citation

  • Yifu Lin, Justin, 1999. "Technological change and agricultural household income distribution: theory and evidence from China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(2), pages 1-16, June.
    • Handle: RePEc:ags:aareaj:117041
    DOI: 10.22004/ag.econ.117041
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    References listed on IDEAS

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    Cited by:

    1. Shijun Ding & Laura Meriluoto & W. Robert Reed & Daoyun Tao & Haitao Wu, 2010. "The Impact of Agricultural Technology Adoption of Income Inequality in Rural China," Working Papers in Economics 10/41, University of Canterbury, Department of Economics and Finance.
    2. The Dung Bui & Dung Mau Nguyen, 2022. "Sustainable land managements in Vietnam: adoption determinants and income effects at farm household level," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9687-9703, July.
    3. Ding, Shijun & Meriluoto, Laura & Reed, W. Robert & Tao, Dayun & Wu, Haitao, 2011. "The impact of agricultural technology adoption on income inequality in rural China: Evidence from southern Yunnan Province," China Economic Review, Elsevier, vol. 22(3), pages 344-356, September.
    4. Aynalem Shita & Nand Kumar & Seema Singh, 2021. "Technology, poverty and income distribution nexus: The case of fertilizer adoption in Ethiopia," African Development Review, African Development Bank, vol. 33(4), pages 742-755, December.
    5. Bola Awotide & Arega Alene & Tahirou Abdoulaye & Victor Manyong, 2015. "Impact of agricultural technology adoption on asset ownership: the case of improved cassava varieties in Nigeria," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1239-1258, December.
    6. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.

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