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The Impact of Agricultural Technology Adaption on Income Inequality in Rural China

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This study analyzes the impact on income inequality of government efforts to increase agricultural incomes in rural China. It collects and analyzes survey data from 473 households in Yunnan, China in 2004. In particular, it investigates the effects of government efforts to promote improved upland rice technologies. Our analysis shows that farmers who adopted these technologies had incomes approximately 15 percent higher than non-adopters. Despite this relatively large increase, we estimate that the impact on income inequality was relatively slight. This is primarily due to the fact that lower-income farmers adopted the improved rice technology at rates that were roughly equivalent to those of higher-income farmers.

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  • Shijun Ding & Laura Meriluoto & W. Robert Reed & Dayun Tao & Haitao Wu, 2011. "The Impact of Agricultural Technology Adaption on Income Inequality in Rural China," Working Papers in Economics 11/04, University of Canterbury, Department of Economics and Finance.
    • Handle: RePEc:cbt:econwp:11/04
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    2. F. Vidogbéna & A. Adégbidi & R. Tossou & F. Assogba-Komlan & T. Martin & M. Ngouajio & S. Simon & L. Parrot & S. T. Garnett & K. K. Zander, 2016. "Exploring factors that shape small-scale farmers’ opinions on the adoption of eco-friendly nets for vegetable production," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(6), pages 1749-1770, December.
    3. Shukun Wang & Changquan Liu & Lei Han & Tingting Li & Guolei Yang & Taofeng Chen, 2022. "Corn Grain or Corn Silage: Effects of the Grain-to-Fodder Crop Conversion Program on Farmers’ Income in China," Agriculture, MDPI, vol. 12(7), pages 1-16, July.
    4. Ahmad Romadhoni Surya Putra, R. & Liu, Zhen & Lund, Mogens, 2017. "The impact of biogas technology adoption for farm households – Empirical evidence from mixed crop and livestock farming systems in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1371-1378.
    5. Nguyen, Canh Phuc & Doytch, Nadia, 2022. "The impact of ICT patents on economic growth: An international evidence," Telecommunications Policy, Elsevier, vol. 46(5).
    6. Yun Shen & Jinmin Wang & Luyao Wang & Bin Wu & Xuelan Ye & Yang Han & Rui Wang & Abbas Ali Chandio, 2022. "How Do Cooperatives Alleviate Poverty of Farmers? Evidence from Rural China," Land, MDPI, vol. 11(10), pages 1-23, October.
    7. Lahiri, Radhika & Ding, Juhong & Chinzara, Zivanemoyo, 2018. "Technology adoption, adaptation and growth," Economic Modelling, Elsevier, vol. 70(C), pages 469-483.
    8. Thanos Fragkandreas, 2022. "Three Decades of Research on Innovation and Inequality: Causal Scenarios, Explanatory Factors, and Suggestions," Working Papers 60, Birkbeck Centre for Innovation Management Research, revised Feb 2022.
    9. Muhammad Khan & Muhammad Khan & Khalid Zaman & Muhammad Khan, 2014. "The evolving role of agricultural technology indicators and economic growth in rural poverty: has the ideas machine broken down?," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2007-2022, July.
    10. Tao Tang & Lizeth Cuesta & Brayan Tillaguango & Rafael Alvarado & Abdul Rehman & Diana Bravo-Benavides & Natalia Zárate, 2022. "Causal Link between Technological Innovation and Inequality Moderated by Public Spending, Manufacturing, Agricultural Employment, and Export Diversification," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    11. Pingyang Liu & Juan M. Moreno & Peiying Song & Elona Hoover & Marie K. Harder, 2016. "The Use of Oral Histories to Identify Criteria for Future Scenarios of Sustainable Farming in the South Yangtze River, China," Sustainability, MDPI, vol. 8(9), pages 1-24, August.
    12. Hua, Ye, 2015. "Influential factors of farmers' demands for agricultural science and technology in China," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 249-254.
    13. Tiago Neves Sequeira & Marcelo Santos & Alexandra Ferreira-Lopes, 2017. "Income Inequality, TFP, and Human Capital," The Economic Record, The Economic Society of Australia, vol. 93(300), pages 89-111, March.
    14. Manuela Magalhães & Tiago Sequeira & Óscar Afonso, 2019. "Industry Concentration and Wage Inequality: a Directed Technical Change Approach," Open Economies Review, Springer, vol. 30(3), pages 457-481, July.
    15. Aynalem Shita & Nand Kumar & Seema Singh, 2021. "Technology, poverty and income distribution nexus: The case of fertilizer adoption in Ethiopia," African Development Review, African Development Bank, vol. 33(4), pages 742-755, December.
    16. Marcelo Santos & Tiago Neves Sequeira & Alexandra Ferreira-Lopes, 2017. "Income Inequality and Technological Adoption," Journal of Economic Issues, Taylor & Francis Journals, vol. 51(4), pages 979-1000, October.
    17. Huang, Wu & Zeng, Di & Zhou, Shudong, 2015. "Welfare Impacts of Modern Peanut Varieties in China," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(3), pages 1-18, September.
    18. The Dung Bui & Dung Mau Nguyen, 2022. "Sustainable land managements in Vietnam: adoption determinants and income effects at farm household level," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9687-9703, July.
    19. Jabłoński Łukasz, 2019. "Inequality in Economics: The Concept, Perception, Types, and Driving Forces," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(1), pages 17-43, March.

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    More about this item

    Keywords

    Rural economic development; Chinese economic development; upland rice; rural-urban income inequality; agricultural income policy;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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