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Technological change and agricultural household income distribution: theory and evidence from China


  • Yifu Lin, Justin


This article applies a general equilibrium model to analyse the impact of new rice technology on household income and uses agricultural household survey data from China to test the implications of this model. It is shown that, when a new rice technology becomes available, the adopting household will reallocate resources to increase rice production and reduce the production of other goods. Meanwhile, the non‐adopting households will do the opposite. Thus, the income from rice becomes increasingly concentrated in the adopting households and income from non‐rice becomes increasingly concentrated in the non‐adopting households. If only one source of income is examined, the introduction of new rice technology increases the inequality of income distribution in rural areas. But, if the total household income is examined, the distributional inequality is mitigated.

Suggested Citation

  • 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).
  • Handle: RePEc:ags:aareaj:117041

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    References listed on IDEAS

    1. Lin, Justin Yifu, 1991. "The household responsibility system reform and the adoption of hybrid rice in China," Journal of Development Economics, Elsevier, vol. 36(2), pages 353-372, October.
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    Cited by:

    1. Ding, Shijun & Meriluoto, Laura & Reed, W. Robert & Tao, Dayun & Wu, Haitao, 2011. "The impact of agricultural technology adoption on income inequality in rural China: Evidence from southern Yunnan Province," China Economic Review, Elsevier, vol. 22(3), pages 344-356, September.
    2. Bola Awotide & Arega Alene & Tahirou Abdoulaye & Victor Manyong, 2015. "Impact of agricultural technology adoption on asset ownership: the case of improved cassava varieties in Nigeria," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1239-1258, December.
    3. Shijun Ding & Laura Meriluoto & W. Robert Reed & Daoyun Tao & Haitao Wu, 2010. "The Impact of Agricultural Technology Adoption of Income Inequality in Rural China," Working Papers in Economics 10/41, University of Canterbury, Department of Economics and Finance.
    4. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.

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