Technological Change: The Re-Discovery of the Engine of Productivity Growth in China's Rural Economy

The purpose of the paper is to explain the determinants of technological adoption and demonstrate the importance of technological change in rice yield growth during China's reform period. Using a unique data set on the nation's rice economy, in the first part of a two stage econometric model, adoption of new technologies (hybrid rice and single/double cropped rice) is shown to be chosen on the basis of two basic factors: the availability of a new technologies and the willingness of producers to adopt them. Treating technology as an endogenous factor, a set of rice supply and derived demand equations is subsequently estimated, and the parameters are used in a decomposition analysis. While institutional and environmental factors are found to be significant detenninants of post-reform productivity increases, technological change has been shown to be the greatest across all periods, and can account for most of the growth in recent years.

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 Record created 2017-04-01, last modified 2018-01-22

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