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The Great Exodus

Author

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  • Fang Cai

Abstract

Purpose - The purpose of this paper is to review the process of rural labor reallocation and unfolds its growth effect through sufficiently supplying human resources, preventing diminishing return to capital, and increasing labor productivity. Design/methodology/approach - The author surveys literature and statistics related to the subject to comprehensively picture the 40-year course of the shift and reallocation of agricultural surplus labor. Findings - In the past 40 years, reforms in relevant areas have eliminated institutional barriers deterring labor mobility and allowed agricultural laborers to exit from low-productivity farming employment, migrate beyond rural-urban boundary and across regions, sectors, and ownerships, and enter higher productivity employment in non-agricultural sectors. As a result, resources allocative efficiency has been substantially improved, contributing a significant part to labor productivity growth and thus economic growth of the Chinese economy as a whole. Social implications - To sustain this source of economic growth as far as China completes its transition from upper-middle income status to high-income status, deepening reforms is urgently needed. The author provides policy suggestions for further reform. Originality/value - This paper enhances people’s understanding of the Chinese economic reform and its nature of efficiency and inclusion.

Suggested Citation

  • Fang Cai, 2018. "The Great Exodus," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(1), pages 3-15, February.
    • Handle: RePEc:eme:caerpp:caer-10-2017-0178
    DOI: 10.1108/CAER-10-2017-0178
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    Citations

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    Cited by:

    1. Na Xu & Liqin Zhang & Xiyuan Leng, 2022. "Sustainable Food Production from a Labor Supply Perspective: Policies and Implications," Sustainability, MDPI, vol. 14(23), pages 1-19, November.
    2. Zhe Zhao & Pengyu Peng & Fan Zhang & Jiayin Wang & Hongxuan Li, 2022. "The Impact of the Urbanization Process on Agricultural Technical Efficiency in Northeast China," Sustainability, MDPI, vol. 14(19), pages 1-20, September.
    3. Tongwei Qiu & Xinjie Shi & Biliang Luo, 2022. "Formalizing agricultural rentals in China: Does local public action help?," Development Policy Review, Overseas Development Institute, vol. 40(4), July.
    4. Xiaolin Guo & Guanming Shi & Linyi Zheng & Wenrong Qian, 2022. "How Does the Land Rental Market Participation Affect Household Efficiency? Evidence from Rural China," IJERPH, MDPI, vol. 19(23), pages 1-14, December.
    5. Hongyun Zheng & Wanglin Ma, 2021. "The role of resource reallocation in promoting total factor productivity growth: Insights from China’s agricultural sector," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2350-2371, November.
    6. Laixun Zhao, 2022. "A simple model of the Hukou system and Chinese exports," Review of International Economics, Wiley Blackwell, vol. 30(2), pages 549-565, May.
    7. Ma, Wanglin & Renwick, Alan & Grafton, Quentin, 2018. "Farm machinery use, off-farm employment and farm performance in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(2), April.
    8. Qiu, Tongwei & Shi, Xinjie & He, Qinying & Luo, Biliang, 2021. "The paradox of developing agricultural mechanization services in China: Supporting or kicking out smallholder farmers?," China Economic Review, Elsevier, vol. 69(C).
    9. Zheng Wang & Mingwei Yang & Zhiyong Zhang & Yingjuan Li & Chuanhao Wen, 2022. "The Impact of Land Transfer on Vulnerability as Expected Poverty in the Perspective of Farm Household Heterogeneity: An Empirical Study Based on 4608 Farm Households in China," Land, MDPI, vol. 11(11), pages 1-16, November.
    10. Baležentis, Tomas & Li, Tianxiang & Chen, Xueli, 2021. "Has agricultural labor restructuring improved agricultural labor productivity in China? A decomposition approach," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    11. Qiu, Tongwei & Boris Choy, S.T. & Li, Shangpu & He, Qinying & Luo, Biliang, 2020. "Does land renting-in reduce grain production? Evidence from rural China," Land Use Policy, Elsevier, vol. 90(C).
    12. Wang, Sun Ling & Huang, Jikun & Wang, Xiaobing & Tuan, Francis, 2019. "Are China’s regional agricultural productivities converging: How and why?," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    13. Tongwei, Qiu & Luo, Biliang & Boris Choy, S.T. & Li, Yifei & He, Qinying, 2020. "Do land renting-in and its marketization increase labor input in agriculture? Evidence from rural China," Land Use Policy, Elsevier, vol. 99(C).

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