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The Impact of Rural Taxation Reform on Farm Household Income

  • Cuiping Xu
  • Qinghua Shi
  • H. Holly Wang
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    In this study, the impact of Chinese rural taxation reform (RTR) on farm household income is investigated, using panel data collected from nearly 1,000 farm households in fifteen villages in the Yangtze river delta (YRD) area between 1995 and 2005. The results from fixed-effect regression show that RTR had a significant impact, increasing farmer income by 6.82 percent. This increase is much more than the direct income increase brought about by an exemption from the agricultural tax. When the dynamic impact of RTR on farm household income was examined, it was found that the most significant income increase occurred in the first three years after the execution of the new tax policy.

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    Article provided by M.E. Sharpe, Inc. in its journal Chinese Economy.

    Volume (Year): 42 (2009)
    Issue (Month): 4 (July)
    Pages: 75-90

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    Handle: RePEc:mes:chinec:v:42:y:2009:i:4:p:75-90
    Contact details of provider: Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901

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