IDEAS home Printed from https://ideas.repec.org/p/fpr/dsgddp/24.html

Rural non-farm development in China and India: the role of policies and institutions

Author

Listed:
  • Mukherjee, Anit
  • Zhang, Xiaobo

Abstract

The dynamic rural nonfarm sector in China has been a major contributor to the country's remarkable growth, while in India the growth in output and employment in this sector has been rather stagnant. The paper argues that the observed patterns in the rural nonfarm development are the results of institutional differences between the two countries, especially in their political systems, ownership structure, and credit institutions. A review of the strengths and weaknesses of the rural nonfarm economy in China and India highlights the potentials and challenges of growth in the sector.

Suggested Citation

  • Mukherjee, Anit & Zhang, Xiaobo, 2005. "Rural non-farm development in China and India: the role of policies and institutions," DSGD discussion papers 24, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:dsgddp:24
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/160673
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    2. Tsai, Kellee S., 2004. "Imperfect Substitutes: The Local Political Economy of Informal Finance and Microfinance in Rural China and India," World Development, Elsevier, vol. 32(9), pages 1487-1507, September.
    3. Mr. Harm Zebregs & Ms. Wanda S Tseng, 2002. "Foreign Direct Investment in China: Some Lessons for Other Countries," IMF Policy Discussion Papers 2002/003, International Monetary Fund.
    4. Lal, Deepak, 1995. "India and China: Contrasts in economic liberalization?," World Development, Elsevier, vol. 23(9), pages 1475-1494, September.
    5. Mukherjee, Anit N. & Kuroda, Yoshimi, 2003. "Productivity growth in Indian agriculture: is there evidence of convergence across states?," Agricultural Economics, Blackwell, vol. 29(1), pages 43-53, July.
    6. Shenggen Fan & Xiaobo Zhang & Sherman Robinson, 2003. "Structural Change and Economic Growth in China," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 360-377, August.
    7. Zhang, Xiaobo & Tan, Kong-Yam, 2004. "Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China," DSGD discussion papers 13, International Food Policy Research Institute (IFPRI).
    8. Ravi Kanbur & Xiaobo Zhang, 2005. "Fifty Years of Regional Inequality in China: a Journey Through Central Planning, Reform, and Openness," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 87-106, February.
    9. Kashyap, S. P., 1988. "Growth of small-size enterprises in India: Its nature and content," World Development, Elsevier, vol. 16(6), pages 667-681, June.
    10. Zhang, Xiaobo & Kanbur, Ravi, 2005. "Spatial inequality in education and health care in China," China Economic Review, Elsevier, vol. 16(2), pages 189-204.
    11. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India," Research reports 110, International Food Policy Research Institute (IFPRI).
    12. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920, April.
    13. Zhang, Xiaobo & Fan, Shenggen, 2004. "Public investment and regional inequality in rural China," Agricultural Economics, Blackwell, vol. 30(2), pages 89-100, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    2. Khandker, Shahidur R. & Samad, Hussain A. & Ali, Rubaba, 2013. "Does access to finance matter in microenterprise growth ? evidence from Bangladesh," Policy Research Working Paper Series 6333, The World Bank.
    3. Renkow, Mitch, 2010. "Impacts of IFPRI's "priorities for pro-poor public investment" global research program," Impact assessments 31, International Food Policy Research Institute (IFPRI).
    4. Emran,M. Shahe & Sun,Yan - GSP05, 2015. "Are the children of uneducated farmers doubly disadvantaged ? farm, nonfarm and intergenerational educational mobility in rural China," Policy Research Working Paper Series 7459, The World Bank.
    5. Hoang, Trung X. & Pham, Cong S. & Ulubaşoğlu, Mehmet A., 2014. "Non-Farm Activity, Household Expenditure, and Poverty Reduction in Rural Vietnam: 2002–2008," World Development, Elsevier, vol. 64(C), pages 554-568.
    6. Emran, M. Shahe & Sun, Yan, 2014. "Are the Children of Uneducated Farmers Doubly Doomed? Farm, Nonfarm and Intergenerational Educational Mobility in Rural China," MPRA Paper 59230, University Library of Munich, Germany.
    7. Zhao, Xiaoxue, 2020. "Land and labor allocation under communal tenure: Theory and evidence from China," Journal of Development Economics, Elsevier, vol. 147(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mukherjee, Anit & Zhang, Xiaobo, 2007. "Rural Industrialization in China and India: Role of Policies and Institutions," World Development, Elsevier, vol. 35(10), pages 1621-1634, October.
    2. Renkow, Mitch, 2010. "Impacts of IFPRI's "priorities for pro-poor public investment" global research program," Impact assessments 31, International Food Policy Research Institute (IFPRI).
    3. Pradip K. Bhaumik & Arindam Banik, 2010. "Rigidities restraining movement of a rural artisan from poor to non‐poor state," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(1), pages 17-40, January.
    4. Diao, Xinshen & Hazell, Peter B. R. & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    5. Diao, Xinshen & Hazell, Peter B.R. & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development implications for Sub-Saharan Africa," DSGD Discussion Papers 55405, CGIAR, International Food Policy Research Institute (IFPRI).
    6. nan, 2007. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-8018-8664-5 edited by Haggblade, Steven; Hazell, Peter B. R.; Reardon, Thomas Anthony, July.
    7. Xing, Li & Fan, Shenggen & Luo, Xiaopeng & Zhang, Xiaobo, 2006. "Village Inequality in Western China," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25390, International Association of Agricultural Economists.
    8. Zhang, Xiaobo, 2006. "Asymmetric property rights in China's economic growth," DSGD Discussion Papers 55406, CGIAR, International Food Policy Research Institute (IFPRI).
    9. Terry Sicular & Yue Ximing & Björn Gustafsson & Li Shi, 2007. "The Urban–Rural Income Gap And Inequality In China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 93-126, March.
    10. Narayanamoorthy, A. & Hanjra, Munir A., 2010. "What Contributes to Disparity in Rural-Urban Poverty in Tamil Nadu?: A District Level Analysis," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(2), pages 1-17.
    11. Shyamal K. Chowdhury & Ashok Gulati & E. Gumbira-Sa'id, 2005. "The Rise of Supermarkets and Vertical Relationships in the Indonesian Food Value Chain: Causes and Consequences," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 2(1&2), pages 39-48, December.
    12. Thomas Baudin, 2011. "Family Policies: What Does the Standard Endogenous Fertility Model Tell Us?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(4), pages 555-593, August.
    13. Lindbeck, Assar, 2006. "Economic-Social Interaction during China’s Transition," Working Paper Series 680, Research Institute of Industrial Economics.
    14. Faguet, Jean-Paul & Shami, Mahvish, 2008. "Fiscal policy and spatial inequality in Latin America and beyond," LSE Research Online Documents on Economics 27162, London School of Economics and Political Science, LSE Library.
    15. Shiyi Chen & Amelia U. Santos-Paulino, 2013. "Energy Consumption and Carbon Emission Based Industrial Productivity in China: A Sustainable Development Analysis," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 644-661, November.
    16. repec:spo:wpecon:info:hdl:2441/6741 is not listed on IDEAS
    17. Zhicheng Liang, 2006. "Financial Development, Growth, and Regional Disparity in Post-Reform China," WIDER Working Paper Series RP2006-90, World Institute for Development Economic Research (UNU-WIDER).
    18. Jean-Paul Fitoussi & Francesco Saraceno, 2008. "The Intergenerational Content of Social Spending: Health Care and Sustainable Growth in China," Documents de Travail de l'OFCE 2008-27, Observatoire Francais des Conjonctures Economiques (OFCE).
    19. Gabriella Berloffa & Eleonora Matteazzi & Alina Şandor & Paola Villa, 2019. "The quality of employment in the early labour market experience of young Europeans," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 43(6), pages 1549-1575.
    20. Jinjing Wu & Peter A. Muennig & Katherine Keyes & Jilei Wu, 2019. "Generational differences in longitudinal blood pressure trajectories by geographic region during socioeconomic transitions in China," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 64(9), pages 1375-1387, December.
    21. Marian Rizov & Xufei Zhang, 2014. "Regional disparities and productivity in China: Evidence from manufacturing micro data," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 321-339, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:dsgddp:24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.