The Great Chinese Famine (1959–1961) and farm households’ adoption of technology: evidence from China

Xinyan Hu, Xiangpo Chen, Siqi Ya Yao and Gaiqing Zhang

Australian Journal of Agricultural and Resource Economics, 2021, vol. 66, issue 01

Abstract: The diffusion of new technology is an important driver of agricultural development, especially in the developing world. In this research, we follow the persistence of major historical events, employing a difference-in-differences method to carefully examine the long-term effect of China’s 1959–1961 famine on farm households’ current decisions to adopt technology. Further, we combine a mediating regression procedure with a bootstrap method to explore the mechanism of impact in this relationship. Overall, this study provides strong empirical evidence that the Great Famine attenuated technology adoption; moreover, a 1% increase in exposure to famine in childhood and adolescence resulted in a 0.137% decrease in the probability of technology adoption when controlling for village dummies. An analysis of mediating effects reveals that risk preferences account for the channel of famine persistence.

Keywords: Research and Development/Tech Change/Emerging Technologies; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:342992

DOI: 10.22004/ag.econ.342992

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