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Institutional Reforms, Agricultural Risks and Agro-Industrial Diversification in Rural China

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  • Weiyong Yang

Abstract

Since 1978, there has been a remarkable diversification trend in rural China, characterized by an impressive development of rural enterprises. The main objective of this paper is to understand the forces driving this agro-industrial diversification with a particular attention paid to two categories of factors, agricultural income risks and institutional factors. Using a panel data of 28 Chinese provinces from 1986 to 2001, we show that the diversification decision is jointly determined by relative return between agriculture and rural industry, climatic risks, price volatility of agriculture products, ownership evolution of rural enterprises, and government's food security concern.

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  • Weiyong Yang, 2007. "Institutional Reforms, Agricultural Risks and Agro-Industrial Diversification in Rural China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 12(3), pages 386-402.
    • Handle: RePEc:taf:rjapxx:v:12:y:2007:i:3:p:386-402
    DOI: 10.1080/13547860701406001
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    Cited by:

    1. Yang, Weiyong, 2009. "Economic structural changes and rural income: Evidence from Chinese provinces during the reform period," China Economic Review, Elsevier, vol. 20(4), pages 742-753, December.
    2. Feinian Chen & Kim Korinek, 2010. "Family life course transitions and rural Household economy during China’s market reform," Demography, Springer;Population Association of America (PAA), vol. 47(4), pages 963-987, November.

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