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Social Viability Roles of the Agricultural Sector in China

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  • Weiming, Tian
  • Xiumei, Liu
  • Xia, Kang

Abstract

This study assesses how the transfer of rural labor to non-farm sectors affects China's national economy and the role the agricultural sector plays with respect to rural-urban migration. Econometric models using official Chinese statistics are used to: evaluate the marginal productivities of rural labor in agriculture versus non-agriculture; identify determinants of rural labor transfer; and assess the socioeconomic impacts of these transfers. It is concluded that though agricultural growth stems problems relating to over-urbanization, there are significant economic costs and undesirable social consequences associated with under-urbanization. Gains brought about by flexibility in the transfer of rural labor to non rural labor include higher GDP and reduced discrepancies in living standards for rural and urban populations.

Suggested Citation

  • Weiming, Tian & Xiumei, Liu & Xia, Kang, 2004. "Social Viability Roles of the Agricultural Sector in China," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations (FAO), Agricultural and Development Economics Division (ESA), vol. 1(01), pages 1-20.
    • Handle: RePEc:ags:ejade1:12006
    DOI: 10.22004/ag.econ.12006
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    References listed on IDEAS

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    1. Zhang, Linxiu & Rozelle, Scott & Huang, Jikun, 2001. "Off-Farm Jobs and On-Farm Work in Periods of Boom and Bust in Rural China," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 505-526, September.
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