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Does farmer economic organization and agricultural specialization improve rural income? Evidence from China


  • Yang, Dan
  • Liu, Zimin


This paper builds simultaneous equations model based on survey data of 2445 Chinese villages to do empirical analysis of the relationship among farmer economic organization, agricultural specialization and rural income. It finds that raising the level of agricultural specialization can improve rural income significantly, and the development of farmer economic organization is an effective way to raise the level of agricultural specialization; The factors, which affect whether farmers participating in farmer economic organization, are characteristics of farmers, situation of farmer economic organization and relevant policies promoting the development of farmer economic organization. Therefore, it has great significance to agricultural specialization and rural income growth for government to take measures to promote development of farmer economic organization.

Suggested Citation

  • Yang, Dan & Liu, Zimin, 2012. "Does farmer economic organization and agricultural specialization improve rural income? Evidence from China," Economic Modelling, Elsevier, vol. 29(3), pages 990-993.
  • Handle: RePEc:eee:ecmode:v:29:y:2012:i:3:p:990-993 DOI: 10.1016/j.econmod.2012.02.007

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    References listed on IDEAS

    1. Allan N. Rae & Xiaohui Zhang, 2009. "China's booming livestock industry: household income, specialization, and exit," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 603-616, November.
    2. Babbage, Charles, 1832. "Economy of Machinery and Manufactures," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number babbage1832.
    3. Fisher, Franklin M & Temin, Peter, 1970. "Regional Specialization and the Supply of Wheat in the United States, 1867-1914," The Review of Economics and Statistics, MIT Press, vol. 52(2), pages 134-149, May.
    4. M. Shahe Emran & Forhad Shilpi, 2012. "The extent of the market and stages of agricultural specialization," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 1125-1153, August.
    5. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
    6. Huffman, Wallace E. & Evenson, Robert E., 2000. "Structural and productivity change in US agriculture, 1950-1982," Agricultural Economics, Blackwell, vol. 24(2), pages 127-147, January.
    7. Heling Shi & Xiaokai Yang, 2006. "A New Theory Of Industrialization," World Scientific Book Chapters,in: Inframarginal Contributions To Development Economics, chapter 17, pages 437-460 World Scientific Publishing Co. Pte. Ltd..
    8. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    9. Colin A. Carter & Bryan Lohmar, 2002. "Regional Specialization of China's Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 749-753.
    10. Steven Were Omamo, 1998. "Farm-to-market transaction costs and specialisation in small-scale agriculture: Explorations with a non-separable household model," Journal of Development Studies, Taylor & Francis Journals, vol. 35(2), pages 152-163.
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    More about this item


    Farmer economic organization; Agricultural specialization; Rural income growth; Villages;

    JEL classification:

    • P24 - Economic Systems - - Socialist Systems and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness


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