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Abstract

This paper analyses time allocations of a sample of farmers, from four southwest counties in China that are representative of the poor areas of the country. The allocations of time toward two different activities - farming and non-paid domestic work - are modeled as semi-logarithmic input demand models. Plowland areas and demographic variables are significant explanators of these time allocations, but this is not the case for the economic variables of prices and wage rates. The results suggest the existence of inefficiencies in the markets for products and for labour. It is concluded that sound market systems for inputs and outputs are crucial to poverty reduction and development in poor areas of China.

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