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The impact of agricultural technology adoption on income inequality in rural China: Evidence from southern Yunnan Province

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Author Info

  • Ding, Shijun
  • Meriluoto, Laura
  • Reed, W. Robert
  • Tao, Dayun
  • Wu, Haitao

Abstract

This study analyzes the impact on income inequality of government efforts to increase agricultural incomes in rural China. It collects and analyzes survey data from 473 households in Yunnan, China in 2004. In particular, it investigates the effects of government efforts to promote improved upland rice technologies. Our analysis shows that farmers who adopted these technologies had incomes approximately 15% higher than non-adopters. Despite this relatively large increase, we estimate that the impact on income inequality was relatively slight. This is primarily due to the fact that lower-income farmers adopted the improved rice technology at rates that were roughly equivalent to those of higher-income farmers.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 22 (2011)
Issue (Month): 3 (September)
Pages: 344-356

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Handle: RePEc:eee:chieco:v:22:y:2011:i:3:p:344-356

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Web page: http://www.elsevier.com/locate/chieco

Related research

Keywords: Rural economic development Chinese economic development Upland rice Income inequality Agricultural income policy;

References

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  1. Yifu Lin, Justin, 1999. "Technological change and agricultural household income distribution: theory and evidence from China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(2).
  2. Dwayne Benjamin & Loren Brandt & John Giles, 2004. "The Evolution of Income Inequality in Rural China," William Davidson Institute Working Papers Series 2004-654, William Davidson Institute at the University of Michigan.
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  4. Gustafsson, Bjorn & Shi, Li, 2002. "Income inequality within and across counties in rural China 1988 and 1995," Journal of Development Economics, Elsevier, vol. 69(1), pages 179-204, October.
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  7. Reed, W. Robert & Rogers, Cynthia L., 2003. "A study of quasi-experimental control group methods for estimating policy impacts," Regional Science and Urban Economics, Elsevier, vol. 33(1), pages 3-25, January.
  8. Chen, Xi & Zhang, Xiaobo, 2009. "The Distribution of Income and Well-Being in Rural China: A Survey of Panel Data Sets, Studies and New Directions," MPRA Paper 20587, University Library of Munich, Germany.
  9. Ravallion, Martin & Chen, Shaohua, 1999. " When Economic Reform Is Faster Than Statistical Reform: Measuring and Explaining Income Inequality in Rural China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(1), pages 33-56, February.
  10. Albert Park & Hehui Jin & Scott Rozelle & Jikun Huang, 2002. "Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 67-82.
  11. Freebairn, Donald K., 1995. "Did the Green Revolution Concentrate Incomes? A Quantitative Study of Research Reports," World Development, Elsevier, vol. 23(2), pages 265-279, February.
  12. HU, Ruifa & YANG, Zhijian & KELLY, Peter & HUANG, Jikun, 2009. "Agricultural extension system reform and agent time allocation in China," China Economic Review, Elsevier, vol. 20(2), pages 303-315, June.
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