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The changing role of agriculture with economic structural change – The case of China

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  • Zhang, Yumei
  • Diao, Xinshen

Abstract

We analyze the implication of structural change to the evolving role of agriculture using China as an example. By combining a growth decomposition exercise with Input-Output (IO) and CGE model analyses using China's seven input-output tables (IOTs) in 1987–2017, the evolving role of the agriculture is quantitatively measured. The growth decomposition analysis shows that between 1978 and 2017, China doubled the size of its total labor force, while the absolute number of agricultural workers falls in this period. Rising labor productivity in agriculture has led to rapid agricultural growth without increasing agricultural employment, allowing agriculture to indirectly contribute to the economywide productivity growth through structural change.

Suggested Citation

  • Zhang, Yumei & Diao, Xinshen, 2020. "The changing role of agriculture with economic structural change – The case of China," China Economic Review, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:chieco:v:62:y:2020:i:c:s1043951x20301012
    DOI: 10.1016/j.chieco.2020.101504
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