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Sequencing and the Success of Gradualism: Empirical Evidence from China's Agricultural Reform

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  • Alan de Brauw
  • Jikun Huang
  • Scott Rozelle

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Abstract

This paper provides evidence regarding gains to agricultural market liberalization in China. We empirically identify the different effects that incentive reforms and gradual market liberalization have on China's agricultural economy during its transition period. We find that average gains within the agricultural sector to incentive reform exceed gains to market liberalization by a factor of ten. Our method of analyzing the effects of transition policies on economic performance can be generalized to other reform paths in other transition economies.

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Paper provided by Department of Economics, Williams College in its series Center for Development Economics with number 173.

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Handle: RePEc:wil:wilcde:173

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Keywords: China; agriculture; transition; profit function estimation Creation Date: 2002-06-10;

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  1. Roland, Gérard & Verdier, Thierry, 1997. "Transition and the Output Fall," CEPR Discussion Papers 1636, C.E.P.R. Discussion Papers.
  2. Perkins, Dwight Heald, 1988. "Reforming China's Economic System," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 601-45, June.
  3. Fan, Shenggen, 1990. "Effects Of Technological Change And Institutional Reform On Production Growth In Chinese Agriculture," Staff Papers 13454, University of Minnesota, Department of Applied Economics.
  4. Jin, Songqing & Huang, Jikun & Hu, Ruifa & Rozelle, Scott, 2001. "The Creation And Spread Of Technology And Total Factor Productivity In China'S Agriculture," Working Papers 11981, University of California, Davis, Department of Agricultural and Resource Economics.
  5. McMillan, John & Naughton, Barry, 1992. "How to Reform a Planned Economy: Lessons from China," Oxford Review of Economic Policy, Oxford University Press, vol. 8(1), pages 130-43, Spring.
  6. Gallant, A. Ronald, 1977. "Three-stage least-squares estimation for a system of simultaneous, nonlinear, implicit equations," Journal of Econometrics, Elsevier, vol. 5(1), pages 71-88, January.
  7. 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.
  8. Rozelle, Scott, et al, 2000. "Bureaucrat to Entrepreneur: The Changing Role of the State in China's Grain Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 227-52, January.
  9. Epstein, Larry G & Denny, Michael G S, 1983. "The Multivariate Flexible Accelerator Model: Its Empirical Restrictions and an Application to U.S. Manufacturing," Econometrica, Econometric Society, vol. 51(3), pages 647-74, May.
  10. Knight, John & Song, Lina, 1999. "Employment Constraints and Sub-optimality in Chinese Enterprises," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 284-99, April.
  11. 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.
  12. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  13. William L. Parish & Xiaoye Zhe & Fang Li, . "Nonfarm Work and Marketization of the Chinese Countryside," University of Chicago - Population Research Center 95-6, Chicago - Population Research Center.
  14. Robert E. Lucas & Jr., 1967. "Adjustment Costs and the Theory of Supply," Journal of Political Economy, University of Chicago Press, vol. 75, pages 321.
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Cited by:
  1. Huang, Jikun & Rozelle, Scott, 2002. "The Nature And Distortions To Agricultural Incentives In China And Implications Of Wto Accession," Working Papers 11970, University of California, Davis, Department of Agricultural and Resource Economics.
  2. Chen, Adam Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2003. "Technical Efficiency Of Chinese Grain Production: A Stochastic Production Frontier Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22116, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Mario Jales & Marcos Sawaya Jank & Shunli Yao & Colin Carter, 2006. "Agriculture in Brazil and China : challenges and opportunities," INTAL Working Papers 1296, Inter-American Development Bank, INTAL.

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