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Reforming the Collective Farm: a model

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  • Minquan Liu

Abstract

Collective members on China's communes actively participated in collective production, working even more so than a self-cultivating farmer would, but while engaged in collective work they shirked. The cause of shirking was the work accounting system which credited workpoints according to individual tasks a member performed. A reformed collective farm system (RS) is analysed, which relates workpoints directly to the output a farmer produces. It is shown that the RS can both eliminate the shirking problem as was extensive on communes, and maintain the potential for infrastructural investment through labour accumulation, a practice also widespread on communes.

Suggested Citation

  • Minquan Liu, 1998. "Reforming the Collective Farm: a model," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(1), pages 69-88.
    • Handle: RePEc:taf:irapec:v:12:y:1998:i:1:p:69-88
    DOI: 10.1080/026921719800000026
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    References listed on IDEAS

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    1. Rawski, Thomas G., 1979. "Economic growth and employment in China," World Development, Elsevier, vol. 7(8-9), pages 767-782.
    2. Minquan Liu, "undated". "Labour Allocation Under Baochan," Discussion Papers in Economics 96/3, Division of Economics, School of Business, University of Leicester.
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