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Measuring the Effects of Decollectivization on China's Agricultural Growth: A Panel GMM Approach, 1970-1987

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  • Shengmin Sun

    (Center for Economic Research, Shandong University)

  • Qiang Chen

    (School of Economics, Shandong University)

Abstract

The mainstream view that decollectivization significantly contributed to China's agricultural growth has recently been challenged by revisionists, who emphasize the positive effects of the socialist legacy, such as irrigation and mechanization. This study contributes to this debate by explicitly recognizing the endogeneity of institutional changes and uses lagged weather shocks as valid instruments. With improved data on irrigation and mechanization in a provincial-level dataset covering the1970-1987 period, the results of panel GMM estimations reveal that the Household Responsibility System had a significantly positive effect on China's agricultural growth, which is larger than that indicated by OLS estimates..

Suggested Citation

  • Shengmin Sun & Qiang Chen, 2014. "Measuring the Effects of Decollectivization on China's Agricultural Growth: A Panel GMM Approach, 1970-1987," SDU Working Papers 2014-05, School of Economics, Shandong University.
    • Handle: RePEc:shn:wpaper:2014-05
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    More about this item

    Keywords

    Decollectivization; Household Responsibility System; Agricultural Growth; China;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East

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