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Off‐Farm Employment and Grain Marketable Surplus in China

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  • Ping Zong
  • John Davis

Abstract

This paper examines the effects of off‐farm employment on grain marketable surplus supply during the reform period in China. A theoretical framework demonstrates that farm households' supply behaviour depends not only on the profitability of farm production but also on alternative off‐farm wage opportunities of household members. An empirical model, which assumes full income maximisation of farm households, simultaneously evaluates the effects of on‐farm and off‐farm income on their grain supply behaviour. Particular attention is paid to the effect of off‐farm income through a comparison of conditional and unconditional grain marketable surplus supply elasticities. Results show that off‐farm income had a strong negative effect on grain marketable surplus from farm households following liberalisation of factor markets in China and that this could lead to a loss of marketable surplus supply.

Suggested Citation

  • Ping Zong & John Davis, 1998. "Off‐Farm Employment and Grain Marketable Surplus in China," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 346-358, September.
    • Handle: RePEc:bla:jageco:v:49:y:1998:i:3:p:346-358
    DOI: 10.1111/j.1477-9552.1998.tb01277.x
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