Working Paper: NBER ID: w2148
Authors: John McMillan; John Whalley; Zhu Li Jing
Abstract: This paper analyzes the relative importance of the major factors underlying the post-1978 increase in China's agricultural productivity. We present a method for assessing the role of price increases and strengthened individual incentives due to the introduction of the responsibility system. Data on pre- and post-1978 Chinese agricultural performance are used to calculate incentive indices, giving the fraction of their marginal product that peasants received under the pre-1978 regime.
Keywords: Agricultural Productivity; China; Responsibility System; Price Changes; Economic Reform
JEL Codes: O13; Q18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Incentive effects of the new responsibility system (M52) | Agricultural productivity (Q11) |
| Higher prices (D49) | Agricultural productivity (Q11) |
| Responsibility system introduction (M54) | Total factor productivity in agriculture (Q11) |
| Changes in the incentive structure and price increases (D49) | Agricultural productivity (Q11) |