Marketing reforms, market development and agricultural production in China
Chinese agricultural reforms have consisted of two transitional stages; initially decollectivization in the late 1970s followed by market liberalization in the mid 1980s. While much research has been conducted on the initial stage of increasing the incentives for farmers in collective cultivation, little quantitative evidence exists on how marketing reforms and the development of rural markets has affected agricultural production decisions. Using more accurate and disaggregated measures of the reform and market development components of liberalization than previous research, this study examined the effects of these liberalization policies on the agricultural production decisions in Shaanxi province. Procurement quota levels were found to be positively associated with the area planted to grain crops. Thus, quotas represent an effective way of increasing grain production and thereby also a means of achieving food self sufficiency which remains an important policy objective for the Chinese government. The involvement of state grain stations in free market grain trade and the expansion of rural markets has increased the area planted to the two potential cash crops, soybeans and wheat, and reduced the sown area of the subsistence crop, corn reflecting the reduced need to plant corn as a self insurance mechanism for smoothing consumption. An increase in procurement quotas increases fertilizer use on grain crops, due to the policy of linking quotas to access to below-market priced fertilizer, but decreases the use of labor, which shifts to other more profitable enterprises. Market development has increased these off-farm employment opportunities and the earnings associated with them, thereby promoting the shift of labor out of crop production and increased the use of fertilizer which has also become more available.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Putterman, Louis, 1993. "Continuity and Change in China's Rural Development: Collective and Reform Eras in Perspective," OUP Catalogue, Oxford University Press, number 9780195078725, March.
- 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.
- Park, Albert & Rozelle, Scott & Cai, Fang, 1994. "China's grain policy reforms: Implications for equity, stabilization, and efficiency," China Economic Review, Elsevier, vol. 5(1), pages 15-33.
- Harrold, P., 1992. "China's Reform Experience to Date," World Bank - Discussion Papers 180, World Bank.
- 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.
- 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.
- Sicular, Terry, 1988. "Plan and Market in China's Agricultural Commerce," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 283-307, April.
- Andrew Watson, 1994. "China's Agricultural Reforms: Experiences and Achievements of the Agricultural Sector in the Market Reform Process," Chinese Economies Research Centre (CERC) Working Papers 1994-04, University of Adelaide, Chinese Economies Research Centre.
- Epstein, Larry G, 1981. "Duality Theory and Functional Forms for Dynamic Factor Demands," Review of Economic Studies, Wiley Blackwell, vol. 48(1), pages 81-95, January.
- Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
- Fan, Shenggen & Pardey, Philip G., 1995. "Role of inputs, institutions, and technical innovations in stimulating growth in Chinese agriculture:," EPTD discussion papers 13, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:17:y:1997:i:2-3:p:95-114. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.