Measuring the Effects of Decollectivization on China's Agricultural Growth: A Panel GMM Approach, 1970-1987

Shengmin Sun (shengminsun@sdu.edu.cn) and Qiang Chen
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Shengmin Sun: Center for Economic Research, Shandong University

SDU Working Papers from School of Economics, Shandong University

Abstract: The mainstream view that decollectivization significantly contributed to China's agricultural growth has recently been challenged by revisionists, who emphasize the positive effects of the socialist legacy, such as irrigation and mechanization. This study contributes to this debate by explicitly recognizing the endogeneity of institutional changes and uses lagged weather shocks as valid instruments. With improved data on irrigation and mechanization in a provincial-level dataset covering the1970-1987 period, the results of panel GMM estimations reveal that the Household Responsibility System had a significantly positive effect on China's agricultural growth, which is larger than that indicated by OLS estimates..

Keywords: Decollectivization; Household Responsibility System; Agricultural Growth; China (search for similar items in EconPapers)
JEL-codes: N55 O13 O43 Q15 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-10
New Economics Papers: this item is included in nep-agr, nep-cna, nep-gro, nep-his and nep-tra
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