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Did the communists contribute to China’s rural growth?

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  • Lu, Yi
  • Luan, Mengna
  • Sng, Tuan-Hwee

Abstract

The communist revolution brought unprecedented changes to China. Yet there is no consensus on its role in the history of China’s modern economic growth. We investigate whether local communist party membership affected developmental outcomes from 1957–78 (the Maoist period) and 1978–85 (the reform period). Focusing on Sichuan, China’s most populous province, we use the Long March as an instrument to tease out causal effects. We find that counties with more communist members made larger strides in educational attainment, road construction, and agricultural mechanization during the Maoist period. However, these counties recorded faster output growth only after 1978. Our findings provide empirical support to field studies conducted by sociologists and historians who argue that the communists improved the organizational infrastructure in China’s countryside. Furthermore, we highlight the futility of solving collective action problems without heeding private incentives.

Suggested Citation

  • Lu, Yi & Luan, Mengna & Sng, Tuan-Hwee, 2020. "Did the communists contribute to China’s rural growth?," Explorations in Economic History, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:exehis:v:75:y:2020:i:c:s0014498319302256
    DOI: 10.1016/j.eeh.2019.101315
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    More about this item

    Keywords

    Political economy of transition; Growth and development; China;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions

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