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Technological Change: The Re-Discovery of the Engine of Productivity Growth in China's Rural Economy


  • Huang, Jikun
  • Rozelle, Scott


The purpose of the paper is to explain the determinants of technological adoption and demonstrate the importance of technological change in rice yield growth during China's reform period. Using a unique data set on the nation's rice economy, in the first part of a two stage econometric model, adoption of new technologies (hybrid rice and single/double cropped rice) is shown to be chosen on the basis of two basic factors: the availability of a new technologies and the willingness of producers to adopt them. Treating technology as an endogenous factor, a set of rice supply and derived demand equations is subsequently estimated, and the parameters are used in a decomposition analysis. While institutional and environmental factors are found to be significant detenninants of post-reform productivity increases, technological change has been shown to be the greatest across all periods, and can account for most of the growth in recent years.

Suggested Citation

  • Huang, Jikun & Rozelle, Scott, 1997. "Technological Change: The Re-Discovery of the Engine of Productivity Growth in China's Rural Economy," 1997 Occasional Paper Series No. 7 198197, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaaeo7:198197
    DOI: 10.22004/ag.econ.198197

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    References listed on IDEAS

    1. Lin, Justin Yifu, 1992. "Hybrid Rice Innovation in China: A Study of Market-Demand Induced Technological Innovation in a Centrally-Planned Economy," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 14-20, February.
    2. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
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