Aggregate and distributional impacts of China’s household responsibility system

John Gibson

Australian Journal of Agricultural and Resource Economics, 2020, vol. 64, issue 1, 14-29

Abstract: It is 40 years since China started to abandon collective farming, with initial rural reforms in 1978 that culminated in adoption of the household responsibility system (HRS). Existing studies of impacts of these reforms do not consider nonrandom spread of the HRS, spillovers from early adopters, or distributional effects. In this paper, the synthetic control method and spatial autoregressive panel models with autoregressive errors are used to estimate impacts of the HRS that account for these features. The HRS had a significant positive effect on grain output and food supply in China, while also helping to reduce regional inequality.

Date: 2020
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https://doi.org/10.1111/1467-8489.12329

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