The impact of price regulations on regional welfare and agricultural productivity in China

Selim, Sheikh Tareq 2011. The impact of price regulations on regional welfare and agricultural productivity in China. [Working Paper]. Cardiff Economics Working papser, Cardiff: Cardiff University. Available at: http://business.cardiff.ac.uk/sites/default/files/...

Preview

PDF - Published Version Download (340kB) | Preview

Abstract

The nineties' agricultural reform in China that was aimed at deregulating the agricultural market eventually resulted in a huge drop in agricultural production and a high rate of in�ation in agricultural prices; this apparently motivated the government to take over the control of agricultural prices in 1998. We examine how and to what extent this reform a¤ected the productivity and welfare of grain farmers in China at the regional level. We fi�nd that the price regulation 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, for the long run such regulations can result in larger drop in agricultural production because of its negative impact on incentives to produce more.

Item Type:	Monograph (Working Paper)
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HV Social pathology. Social and public welfare J Political Science > JQ Political institutions Asia
Uncontrolled Keywords:	China; Welfare; TFP; Agriculture; Grain Production.
Publisher:	Cardiff University
ISBN:	1749-6101
Date of First Compliant Deposit:	30 March 2016
Last Modified:	19 Mar 2016 22:48
URI:	https://orca.cardiff.ac.uk/id/eprint/27996

Actions (repository staff only)

Edit Item