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Title: AGRICULTURAL PRODUCTIVITY GROWTH AND REGIONAL DISPARITY IN POST-REFORM CHINA

Author
item Wu, Shunxiang
item Lu, Yao
item DEVADOSS, STEPHEN - UNIVERSITY OF IDAHO

Submitted to: Review of Development Economics
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 5/8/2001
Publication Date: N/A
Citation: N/A

Interpretive Summary: While enjoying high rates of overall economic growth, growing economic disparity among regions in China is a serious concern because of its significance to the welfare of the nation and political stability of the country. Regional total factor productivity disparity reflects the the differences in economic achievements and in turn the extent of inequality among regions. In this stydy, we analyze the regional economic disparities by examining how the total factor productivity (TFP) growth has changed in the Chinese agriculture during the economic transition period (1980-1995). TFP is a productivity measure involving all factors of production. According to the results of this study, the gap in regional productivity has been widening in China with only a couple of regions pulling ahead. The divergence of technical change among regions seems to be the major factor underlying growing regional disparity in the agricultural sector. The results of analysis of the degree and reasons fo regional disparity would help policymakers to understand the nature of the problems and to implement policies to balance the economic growth among regions.

Technical Abstract: Average productivity growth in post-reformed Chinese agriculture was 2.8% annually for the country as a whole over the 1980-1995 period. Technical innovation contributed to productivity growth by 3.0%, while the poor efficiency performance reduced productivity growth by 0.2%. We found evidences of profound productivity growth divergence among regions during this economic transition period. The divergence of technical change rather than efficiency change among regions seems to be the major factor underlying growing regional disparity in the agricultural sector. The lagging Northwest region showed neither a systematic trend to close the gap nor propensity to catch up with the leading Southern region.