The Impact of Positive Agricultural Income Shocks on Rural Chinese Households

In the post-collectivization period, rural Chinese households were required to sell part of their grain output to the state at a below-market price; however, increases in this quota price beginning in 1993 generated substantial positive income shocks. These income shocks also varied cross-sectionall...

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Main Author:	Leight, Jessica
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2021
Subjects:	INCOME SHOCK POVERTY TRAP AGRICULTURAL INVESTMENT DIVERSIFICATION MICROENTERPRISE INTERNAL MIGRATION
Online Access:	http://hdl.handle.net/10986/36078

id	okr-10986-36078
recordtype	oai_dc
spelling	okr-10986-360782021-08-07T05:10:30Z The Impact of Positive Agricultural Income Shocks on Rural Chinese Households Leight, Jessica INCOME SHOCK POVERTY TRAP AGRICULTURAL INVESTMENT DIVERSIFICATION MICROENTERPRISE INTERNAL MIGRATION In the post-collectivization period, rural Chinese households were required to sell part of their grain output to the state at a below-market price; however, increases in this quota price beginning in 1993 generated substantial positive income shocks. These income shocks also varied cross-sectionally in accordance with crop composition given that quotas were systematically larger for rice-producing households, generating a quasi-random source of variation in the size of the shock driven by climatic variation in suitability for rice cultivation. Households induced to experience relatively larger income shocks show evidence of decreased agricultural investment, increased investment in non-agricultural businesses, and increased migration as households gain increased income, consistent with the hypothesis that credit constraints may have constrained some households from entering non-agricultural production ex ante. In addition, there is evidence that these households were concentrated among households who had not previously diversified out of agriculture. 2021-08-06T21:09:29Z 2021-08-06T21:09:29Z 2020-02 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/36078 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	INCOME SHOCK POVERTY TRAP AGRICULTURAL INVESTMENT DIVERSIFICATION MICROENTERPRISE INTERNAL MIGRATION
spellingShingle	INCOME SHOCK POVERTY TRAP AGRICULTURAL INVESTMENT DIVERSIFICATION MICROENTERPRISE INTERNAL MIGRATION Leight, Jessica The Impact of Positive Agricultural Income Shocks on Rural Chinese Households
geographic_facet	East Asia and Pacific China
description	In the post-collectivization period, rural Chinese households were required to sell part of their grain output to the state at a below-market price; however, increases in this quota price beginning in 1993 generated substantial positive income shocks. These income shocks also varied cross-sectionally in accordance with crop composition given that quotas were systematically larger for rice-producing households, generating a quasi-random source of variation in the size of the shock driven by climatic variation in suitability for rice cultivation. Households induced to experience relatively larger income shocks show evidence of decreased agricultural investment, increased investment in non-agricultural businesses, and increased migration as households gain increased income, consistent with the hypothesis that credit constraints may have constrained some households from entering non-agricultural production ex ante. In addition, there is evidence that these households were concentrated among households who had not previously diversified out of agriculture.
format	Journal Article
author	Leight, Jessica
author_facet	Leight, Jessica
author_sort	Leight, Jessica
title	The Impact of Positive Agricultural Income Shocks on Rural Chinese Households
title_short	The Impact of Positive Agricultural Income Shocks on Rural Chinese Households
title_full	The Impact of Positive Agricultural Income Shocks on Rural Chinese Households
title_fullStr	The Impact of Positive Agricultural Income Shocks on Rural Chinese Households
title_full_unstemmed	The Impact of Positive Agricultural Income Shocks on Rural Chinese Households
title_sort	impact of positive agricultural income shocks on rural chinese households
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2021
url	http://hdl.handle.net/10986/36078
_version_	1764484381106241536

The Impact of Positive Agricultural Income Shocks on Rural Chinese Households

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