The Evolution of Intersectoral Financial Relations between Industry and Agriculture in China's Planned Economy Period

Jiyuan Lyu

Papers from arXiv.org

Abstract: This paper examines intersectoral financial relations between industry and agriculture during 1949--1977 through four channels: fiscal, price, quantity procurement, and foreign trade. We find that these relations underwent staged evolution rather than constituting a persistent transfer mechanism: agriculture supported industry in the 1950s, the year 1961 marked a turning point, and the 1970s witnessed the emergence of mutual interdependence between the two sectors. No stable empirical pattern of price mechanisms persistently affecting industrial profitability is observed.

Date: 2026-06, Revised 2026-07
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2606.20286

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