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Market Reforms Versus Structural Reforms In Rural China

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  • Carter, Colin A.
  • Estrin, Andrew J.

Abstract

This paper adds to the debate on the impact of market reforms versus structural reforms in explaining agricultural output growth in China. A multiple-output stochastic frontier and a technical inefficiency equation are estimated using provincial data on the rural economy from 1986 to 1995. Grain self-sufficiency policies and incomplete market reforms in the 1980s and 1990s led to allocative inefficiency. Agricultural disinvestment shrunk the production frontier and the fragmentation of land holdings reduced technical efficiency. China'’s rural economic reform is far from being complete.

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Bibliographic Info

Paper provided by University of California, Davis, Department of Agricultural and Resource Economics in its series Working Papers with number 11965.

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Date of creation: 2001
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Handle: RePEc:ags:ucdavw:11965

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Keywords: Agricultural and Food Policy; O47; Q12; Q15;

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  1. Zhong, Funing & Carter, Colin A., 1991. "Will Market Prices Enhance Chinese Agriculture?: A Test Of Regional Comparative Advantage," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(02), December.
  2. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  3. Jirong Wang & Eric J. Wailes & Gail L. Cramer, 1996. "A Shadow-Price Frontier Measurement of Profit Efficiency in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 146-156.
  4. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
  5. Grosskopf, S. & Margaritis, D. & Valdmanis, V., 1995. "Estimating output substitutability of hospital services: A distance function approach," European Journal of Operational Research, Elsevier, vol. 80(3), pages 575-587, February.
  6. Xiao-Yuan Dong, 2000. "Public investment, social services and productivity of Chinese household farms," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 100-122.
  7. Catherine J. Morrison Paul & Warren E. Johnston & Gerald A. G. Frengley, 2000. "Efficiency in New Zealand Sheep and Beef Farming: The Impacts of Regulatory Reform," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 325-337, May.
  8. Fan, Shenggen, 1999. "Technological change, technical and allocative efficiency in Chinese agriculture: the case of rice production in Jiangsu," EPTD discussion papers 39, International Food Policy Research Institute (IFPRI).
  9. Findlay, Christopher, 2004. "Policy reform in small," World Trade Review, Cambridge University Press, vol. 3(03), pages 422-426, November.
  10. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  11. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
  12. Shujie Yao & Zinan Liu, 1998. "Determinants of Grain Production and Technical Efficiency in China," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 171-184.
  13. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  14. Huang,Yiping, 1998. "Agricultural Reform in China," Cambridge Books, Cambridge University Press, number 9780521620550, October.
  15. Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
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Citations

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Cited by:
  1. Kui-Wai Li & Tung Liu & Lihong Yun, 2008. "Decomposition of Economic and Productivity Growth in Post-reform China," Working Papers 200806, Ball State University, Department of Economics, revised Dec 2008.
  2. Yang, Weiyong, 2009. "Economic structural changes and rural income: Evidence from Chinese provinces during the reform period," China Economic Review, Elsevier, vol. 20(4), pages 742-753, December.
  3. Li, Kui-Wai & Liu, Tung, 2011. "Economic and productivity growth decomposition: An application to post-reform China," Economic Modelling, Elsevier, vol. 28(1), pages 366-373.
  4. Glauben, Thomas & Lu, Wencong C. & Brummer, Bernhard, 2003. "Policy Reform And Productivity Change In Chinese Agriculture: A Distance Function Approach," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25896, International Association of Agricultural Economists.
  5. Ravallion, Martin & van de Walle, Dominique, 2006. "Does rising landlessness signal success or failure for Vietnam's agrarian transition?," Policy Research Working Paper Series 3871, The World Bank.
  6. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
  7. Sizhong Sun, 2006. "Technical Efficiency and Its Determinants in Gansu, West China," Asia Pacific Economic Papers 355, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  8. Monchuk, Daniel C. & Deininger, Klaus W. & Nagarajan, Hari K., 2010. "Does Land Fragmentation Reduce Efficiency: Micro Evidence from India," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61652, Agricultural and Applied Economics Association.

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