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Agricultural certification, market access and rural economic growth: Evidence from poverty-stricken counties in China

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  • Duan, Wenqi
  • Jiang, Mingming
  • Qi, Jianhong

Abstract

Long-term economic growth in impoverished regions has been a critical research and policy concern. Smallholder farmers require access to modern marketing and commercialization channels to transition from subsistence farming and break the shackles of poverty. Agricultural certification provides an avenue to enhance the value of farm produce and eliminate market impediments. This paper examines the impact of an agricultural certification policy implemented in China on the economic growth of poor counties. A two-way fixed-effects model was utilized along with an instrumental variable approach. We find that the agricultural certification policy contributes to economic growth in these areas and that the effects are robust to various biases and endogeneity concerns. The policy fosters rural economic growth by increasing product premiums and employment opportunities. The effects are more pronounced in non-minority counties or those with greater market access. Additionally, the policy yields favorable effects on the surrounding air quality.

Suggested Citation

  • Duan, Wenqi & Jiang, Mingming & Qi, Jianhong, 2024. "Agricultural certification, market access and rural economic growth: Evidence from poverty-stricken counties in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 99-114.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:99-114
    DOI: 10.1016/j.eap.2023.11.028
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    Keywords

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    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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