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Did agricultural technological changes affect China's regional disparity?

Author

Listed:
  • Xiaoyun Liu
  • Xiuqing Wang
  • Xian Xin

Abstract

Purpose - China's agricultural sector has developed very rapidly in the past 30 years and agricultural technological progress is deemed one of the most substantial factors leading to its rapid agricultural GDP growth. The purpose of this paper is to assess the impacts of China's agricultural technological changes on its regional disparity. Design/methodology/approach - The study uses a computable general equilibrium (CGE) model of multiple regions and multiple sectors to investigate the impacts of agricultural technological changes on regional disparity. The CGE model structure includes production side, demand side, and market clearing conditions. Findings - The results suggest that agricultural technological changes significantly reduced China's agricultural regional disparity and accounted for 40 percent reduction in agricultural regional disparity in terms of agricultural GDP per capita. Agricultural technological changes, however, led to an increase in China's overall regional disparity and accounted for 6 percent increase in its overall regional disparity in terms of per capita GDP. Practical implications - China's GDP has been growing very rapidly since 1978 and agricultural GDP has been playing a decreasing role in China's overall GDP. Regional disparity in non‐agricultural GDP per capita overweighted the equalization of agricultural GDP per capita. The results imply that the Chinese government should resort more to non‐agricultural development to fight against the enlarging regional disparity. Originality/value - China's agricultural technological changes have led to an increase in China's overall regional disparity while the changes have significantly reduced China's agricultural regional disparity.

Suggested Citation

  • Xiaoyun Liu & Xiuqing Wang & Xian Xin, 2012. "Did agricultural technological changes affect China's regional disparity?," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(4), pages 440-449, November.
    • Handle: RePEc:eme:caerpp:v:4:y:2012:i:4:p:440-449
    DOI: 10.1108/17561371211284803
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    Cited by:

    1. Rong Sheng & Shi Lin Liu, 2018. "Evolution on regional disparities in China from 2000 to 2012: evidence from 74 cities within three mega-urban regions along Yangtze River," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(5), pages 1989-2006, September.
    2. Ling Ma & Xiaoyun Liu & Xian Xin, 2013. "Do Poor Rural Households Produce Less Grain than Non-poor Rural Households," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(6), pages 22-36, November.

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