The impact of grain self-sufficiency regime on regional welfare and agricultural productivity in China

Selim, S. 2015. The impact of grain self-sufficiency regime on regional welfare and agricultural productivity in China. Agricultural Economics. 46, pp. 1-7. doi:10.1111/agec.12156

TitleThe impact of grain self-sufficiency regime on regional welfare and agricultural productivity in China
AuthorsSelim, S.
Abstract

The nineties’ agricultural reforms in China that were aimed at deregulating the agricultural market eventually resulted in a huge drop in agricultural production and a high rate of inflation in agricultural input prices; this apparently motivated the government to introduce the grain self-sufficiency regime in 1998. We examine how and to what extent this reform affected the productivity and welfare of grain farmers in China at the regional level. We find that the price regulations that destroyed the incentive to exert more effort adversely affected the growth in agricultural productivity but contributed to the growth in farmers’ welfare. Although the price regulations resulted in short-term improvement in welfare across all the regions, in the long run such regulations can potentially result in larger drop in agricultural production because of its negative impact on the incentives to produce more.

KeywordsChina;Productivity;Grain self-sufficiency;Welfare
JournalAgricultural Economics
Journal citation46, pp. 1-7
ISSN1574-0862
Year2015
PublisherWiley
Digital Object Identifier (DOI)doi:10.1111/agec.12156
Web address (URL)http://onlinelibrary.wiley.com/doi/10.1111/agec.12156/abstract
Publication dates
Published08 Apr 2015

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