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Market Reforms Versus Structural Reforms In Rural China

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  • Carter, Colin A.
  • Estrin, Andrew J.

Abstract

This paper adds to the debate on the impact of market reforms versus structural reforms in explaining agricultural output growth in China. A multiple-output stochastic frontier and a technical inefficiency equation are estimated using provincial data on the rural economy from 1986 to 1995. Grain self-sufficiency policies and incomplete market reforms in the 1980s and 1990s led to allocative inefficiency. Agricultural disinvestment shrunk the production frontier and the fragmentation of land holdings reduced technical efficiency. China's rural economic reform is far from being complete.

Suggested Citation

  • Carter, Colin A. & Estrin, Andrew J., 2001. "Market Reforms Versus Structural Reforms In Rural China," Working Papers 11965, University of California, Davis, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucdavw:11965
    DOI: 10.22004/ag.econ.11965
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    Cited by:

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    2. Orea, Luis & Pérez, Jose A. & Roibás, David, 2013. "Evaluating the double effect of land fragmentation on technology choice and dairy farm productivity: A latent class model approach," Efficiency Series Papers 2013/08, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    3. 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.
    4. Sizhong Sun, 2006. "Technical Efficiency and Its Determinants in Gansu, West China," Microeconomics Working Papers 21834, East Asian Bureau of Economic Research.
    5. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
    6. Gong, Binlei, 2018. "Agricultural reforms and production in China: Changes in provincial production function and productivity in 1978–2015," Journal of Development Economics, Elsevier, vol. 132(C), pages 18-31.
    7. Li, Kui-Wai & Liu, Tung, 2011. "Economic and productivity growth decomposition: An application to post-reform China," Economic Modelling, Elsevier, vol. 28(1-2), pages 366-373, January.
    8. 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.
    9. del Corral, J. & Pérez, J.A. & Roibás, D., 2010. "The impact of land fragmentation on milk production," Efficiency Series Papers 2010/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    10. Jing Zhu & Wusheng Yu & Junying Wang & Christian Elleby, 2016. "Tariff Liberalisation, Price Transmission and Rural Welfare in China," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 24-46, February.
    11. Ravallion, Martin & van de Walle, Dominique, 2008. "Does rising landlessness signal success or failure for Vietnam's agrarian transition?," Journal of Development Economics, Elsevier, vol. 87(2), pages 191-209, October.
    12. Hanying Zhang & Jiafen Li & Jinlong Shen & Jianfeng Song, 2022. "Measurement of Supply-and Demand-Side Endowment Effects and Analysis of Their Influencing Factors in Agricultural Land Transfer," Land, MDPI, vol. 11(11), pages 1-21, November.
    13. Vu, Linh Hoang, 2012. "Vietnam’s Agricultural Productivity: A Malmquist Index Approach," MPRA Paper 94800, University Library of Munich, Germany.
    14. Monchuk, Daniel C. & Deininger, Klaus W. & Nagarajan, Hari K., 2010. "Does Land Fragmentation Reduce Efficiency: Micro Evidence from India," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61652, Agricultural and Applied Economics Association.
    15. Kui-Wai Li & Tung Liu & Lihong Yun, 2008. "Decomposition of Economic and Productivity Growth in Post-reform China," Working Papers 200806, Ball State University, Department of Economics, revised Dec 2008.
    16. Nehring, Richard F. & Banker, David E. & O'Donoghue, Erik J., 2003. "Have Hog Producers with Production Contracts Maintained an Economic Advantage over Independent Hog Producers in Recent Years?," 2003 Annual meeting, July 27-30, Montreal, Canada 22057, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Nehring, Richard F. & Christensen, Lee A. & O'Donoghue, Erik J. & Sandretto, Carmen L., 2003. "Manure and Commercial Fertilizer Nutrients Relative to Cropland and Pasture Requirements: Is the Pollution Risk Growing on Corn/Livestock Farms?," 2003 Annual meeting, July 27-30, Montreal, Canada 21980, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Zhou, Yang & Li, Xunhuan & Liu, Yansui, 2020. "Rural land system reforms in China: History, issues, measures and prospects," Land Use Policy, Elsevier, vol. 91(C).

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    More about this item

    Keywords

    Agricultural and Food Policy;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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