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Technological change and agricultural household income distribution: theory and evidence from China

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  • Yifu Lin, Justin

Abstract

This article applies a general equilibrium model to analyse the impact of new rice technology on household income and uses agricultural household survey data from China to test the implications of this model. It is shown that, when a new rice technology becomes available, the adopting household will reallocate resources to increase rice production and reduce the production of other goods. Meanwhile, the non‐adopting households will do the opposite. Thus, the income from rice becomes increasingly concentrated in the adopting households and income from non‐rice becomes increasingly concentrated in the non‐adopting households. If only one source of income is examined, the introduction of new rice technology increases the inequality of income distribution in rural areas. But, if the total household income is examined, the distributional inequality is mitigated.

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File URL: http://purl.umn.edu/117041
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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 43 (1999)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:ags:aareaj:117041

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Keywords: Consumer/Household Economics;

References

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  1. Lin, Justin Yifu, 1991. "The household responsibility system reform and the adoption of hybrid rice in China," Journal of Development Economics, Elsevier, vol. 36(2), pages 353-372, October.
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Cited by:
  1. Shijun Ding & Laura Meriluoto & W. Robert Reed & Dayun Tao & Haitao Wu, 2011. "The Impact of Agricultural Technology Adaption on Income Inequality in Rural China," Working Papers in Economics 11/04, University of Canterbury, Department of Economics and Finance.
  2. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.
  3. Ding, Shijun & Meriluoto, Laura & Reed, W. Robert & Tao, Dayun & Wu, Haitao, 2011. "The impact of agricultural technology adoption on income inequality in rural China: Evidence from southern Yunnan Province," China Economic Review, Elsevier, vol. 22(3), pages 344-356, September.

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