Management Decentralization on China's State Farms

Chung Min Pang and A. John De Boer

American Journal of Agricultural Economics, 1983, vol. 65, issue 4, 657-666

Abstract: Chinese economic reforms initiated in 1978 have changed certain management procedures in the state farm sector. Prior to these reforms, state farm management had little control over use of funds, production decisions, and wage setting. After the reforms, financial responsibility was instituted and new wage-setting devices were implemented which feature closer linking of remuneration to state farm economic performance. The impact of these reforms is discussed for soybeans, sisal, livestock, and employment. While output appears to have responded to these reforms, bottlenecks have appeared, and existing irrationalities in price relationships have been accentuated.

Date: 1983
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