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Reforming state‐market relations in rural China1

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  • Albert Park
  • Scott Rozelle

Abstract

Because of the political importance of stable and affordable food prices, governments in transitional economies in Europe and Asia fkequently struggle to balance the desire to maintain state controls in the rural sector with the goal of promoting market development and privatizing or commercializing state agencies involved in rural trade or finance. This paper examines institutional change in China's rural state agencies during the reform period, focusing on the conflict between managerial incentives to maximize profits, on the one hand, and implement policy, on the other. We explain the reasons for changing contractual incentives and authority arrangements over time, assess the effects of new institutional forms on economic performance and policy implementation, and consider reform options.

Suggested Citation

  • Albert Park & Scott Rozelle, 1998. "Reforming state‐market relations in rural China1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(2), pages 461-480, November.
    • Handle: RePEc:bla:etrans:v:6:y:1998:i:2:p:461-480
    DOI: 10.1111/j.1468-0351.1998.tb00059.x
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    Cited by:

    1. Huang, Qiuqiong & Wang, Jinxia & Easter, K. William & Rozelle, Scott, 2010. "Empirical assessment of water management institutions in northern China," Agricultural Water Management, Elsevier, vol. 98(2), pages 361-369, December.
    2. Rozelle, Scott & Park, Albert & Jin, Hehui & Huang, Jikun, 1999. "Market Emergence and Transition: Transaction Costs, Arbitrage, and Autarky in China’s Grain Markets," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 171900, Australian Agricultural and Resource Economics Society.
    3. Buschena, David E. & Smith, Vincent H. & Di, Hua, 2005. "Policy reform and farmers' wheat allocation in rural China: a case study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), pages 1-16.
    4. David Buschena & Vincent Smith & Hua Di, 2005. "Policy reform and farmers' wheat allocation in rural China: a case study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), pages 143-158, June.
    5. Dwayne Benjamin & Loren Brandt & Paul Glewwe & Guo Li, 2002. "Markets, Human Capital and Inequality: Evidence from Rural China," International Economic Association Series, in: Richard B. Freeman (ed.), Inequality Around the World, chapter 5, pages 87-127, Palgrave Macmillan.
    6. Zhang, Jian & Giles, John & Rozelle, Scott, 2012. "Does it pay to be a cadre? Estimating the returns to being a local official in rural China," Journal of Comparative Economics, Elsevier, vol. 40(3), pages 337-356.
    7. Park, Albert & Sehrt, Kaja, 2001. "Tests of Financial Intermediation and Banking Reform in China," Journal of Comparative Economics, Elsevier, vol. 29(4), pages 608-644, December.
    8. Huang, Jikun & Hu, Ruifa & Pray, Carl & Qiao, Fangbin & Rozelle, Scott, 2003. "Biotechnology as an alternative to chemical pesticides: a case study of Bt cotton in China," Agricultural Economics, Blackwell, vol. 29(1), pages 55-67, July.
    9. Huang, Qiuqiong & Rozelle, Scott & Wang, Jinxia & Huang, Jikun, 2009. "Water management institutional reform: A representative look at northern China," Agricultural Water Management, Elsevier, vol. 96(2), pages 215-225, February.
    10. Songqing Jin & Hengyun Ma & Jikun Huang & Ruifa Hu & Scott Rozelle, 2010. "Productivity, efficiency and technical change: measuring the performance of China’s transforming agriculture," Journal of Productivity Analysis, Springer, vol. 33(3), pages 191-207, June.

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