The Impact of China's Economic Reforms on Agricultural Productivity Growth

Abstract

This paper presents a method for assessing the relative importance of price increases and strengthened individual incentives due to the introduction of the responsibility system for the post-1978 increase in China's agricultural productivity. Data on post-1978 Chinese agricultural performance suggest that a little over three-quarters of the measured productivity increase is due to payment system changes and the remainder to price increases. The authors also use their method to calculate incentive indices, giving an estimate of the fraction of their marginal product that peasants received under the pre-1978 regime. Copyright 1989 by University of Chicago Press.