Technological change: rediscovering the engine of productivity growth in China's rural economy uri icon

abstract

  • This paper focuses on measuring the relative importance of the role of technology versus that of institutional innovation in China's rural economy, A six-equation rice sector model explaining provincial-level technology adoption, yield, and factor demand are econometrically estimated using data from China's 13 rice growing provinces for the period 1975-90, Growth decomposition analysis identifies technology adoption as the most important determinant of rice yield growth during 1978-84, accounting for nearly 40 percent the change; institutional reform accounted for 35 percent of the growth. In 1985-99, technology accounts for all of the increase in rice yields. The study demonstrates earlier studies may have over-estimated the impact of decollectivization.

publication date

  • 1996
  • 1996