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Can grain subsidies impede rural–urban migration in hinterland China? Evidence from field surveys

  • Meng, Lei
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    In this paper I examine if China's grain subsidy program keeps farmers from engaging in migratory work using self-collected panel rural household survey data from Zhijiang, Hubei province. Making use of Zhijiang's unique geographical features, I construct a treatment and a control group and use a difference-in-differences methodology to identify the subsidy effect on migration. My results suggest that the grain subsidy policy does keep farmers at the rural origin.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X12000089
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    Article provided by Elsevier in its journal China Economic Review.

    Volume (Year): 23 (2012)
    Issue (Month): 3 ()
    Pages: 729-741

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    Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:729-741
    Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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    1. Huang, Jikun & Rozelle, Scott & Martin, William J. & Liu, Yu, 2007. "Distortions to Agricultural Incentives in China," Agricultural Distortions Working Paper 48478, World Bank.
    2. Jikun Huang & Xiaobing Wang & Huayong Zhi & Zhurong Huang & Scott Rozelle, 2011. "Subsidies and distortions in China’s agriculture: evidence from producer‐level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 53-71, 01.
    3. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
    4. Wusheng Yu & Hans G. Jensen, 2010. "China's Agricultural Policy Transition: Impacts of Recent Reforms and Future Scenarios," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 343-368.
    5. Guy Stecklov & Paul Winters & Marco Stampini & Benjamin Davis, 2005. "Do conditional cash transfers influence migration? A study using experimental data from the Mexican progresa program," Demography, Springer, vol. 42(4), pages 769-790, November.
    6. Cheng, Fuzhi, 2008. "China: Shadow WTO agricultural domestic support notifications," IFPRI discussion papers 793, International Food Policy Research Institute (IFPRI).
    7. Taylor, J. Edward & Martin, Philip L., 2001. "Human capital: Migration and rural population change," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 9, pages 457-511 Elsevier.
    8. Nico Heerink & Marijke Kuiper & Xiaoping Shi, 2006. "China's New Rural Income Support Policy: Impacts on Grain Production and Rural Income Inequality," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(6), pages 58-69.
    9. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-78, May.
    10. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications, The World Bank, number 9436, August.
    11. Hu, Feng & Xu, Zhaoyuan & Chen, Yuyu, 2011. "Circular migration, or permanent stay? Evidence from China's rural-urban migration," China Economic Review, Elsevier, vol. 22(1), pages 64-74, March.
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