Do Poor Rural Households Produce Less Grain than Non‐Poor Rural Households

15 Pages Posted: 21 Jan 2014

See all articles by Ling Ma

Ling Ma

China Agricultural University - College of Economics and Management; China Agricultural University - Center for Rural Development Policy

Xiaoyun Liu

China Agricultural University - College of Humanities and Development

Xian Xin

China Agricultural University - College of Economics and Management; University of Western Ontario

Date Written: November-December 2013

Abstract

China's poor rural households produce substantially less grain compared with non‐poor rural households. The present paper applies a decomposition approach and uses China's rural household survey data to investigate the causes of this grain output gap. The paper first compares the grain output gap between poor and non‐poor rural households, and then decomposes the gap into differences in yield and area sown. The results indicate that the gap in grain output mainly results from differences in the amount of inputs used in production. Differences in the number of labor days and the level of intermediate inputs account for 13.6 and 47.5 percent of the gap, respectively. Poor rural households are also less efficient in their use of intermediate inputs, which contributes to 13.2 percent of the gap. However, the efficiency of poor households' labor days reduces the gap by 7.2 percent, while agricultural physical capital, household head education and agricultural training have no substantial impact on the household grain output gap.

Keywords: decomposition, grain output, inputs, poor

JEL Classification: I32, Q12, Q18

Suggested Citation

Ma, Ling and Liu, Xiaoyun and Xin, Xian, Do Poor Rural Households Produce Less Grain than Non‐Poor Rural Households (November-December 2013). China & World Economy, Vol. 21, Issue 6, pp. 22-36, 2013, Available at SSRN: https://ssrn.com/abstract=2382302 or http://dx.doi.org/10.1111/j.1749-124X.2013.12044.x

Ling Ma

China Agricultural University - College of Economics and Management ( email )

Beijing
China

China Agricultural University - Center for Rural Development Policy

Beijing
China

Xiaoyun Liu

China Agricultural University - College of Humanities and Development ( email )

Beijing
China

Xian Xin (Contact Author)

China Agricultural University - College of Economics and Management ( email )

Beijing
China

University of Western Ontario

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Suite 2
London, Ontario N6A 5B8
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