The effect of China's agricultural tax abolition on rural families' incomes and production

Xiaxin Wang and Yan Shen

China Economic Review, 2014, vol. 29, issue C, 185-199

Abstract: This paper uses the rural household panel data collected by Research Center for Rural Economy to evaluate the impacts of China's agricultural tax abolition during 2004–2005 on farmers' income and production behavior. We find that the abolition of agricultural tax did not significantly affect agricultural production. The effects on input use and productivity are also found statistically insignificant. All these are consistent with the lump-sum property of the tax and imply little effect of the tax abolition on relaxing credit constraints to farmers. Finally, we find that the tax abolition did not increase farmers' net income significantly.

Keywords: China; Agricultural tax; Income and production (search for similar items in EconPapers)
JEL-codes: H24 J22 O13 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:29:y:2014:i:c:p:185-199

DOI: 10.1016/j.chieco.2014.04.010

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