China’s new rural income support policy: impacts on grain production and income inequality
This paper analyses the impact of agricultural tax abolition and direct income payments to grain farmers on grain production and rural inequality in China. To separate the impact of the income support measures from recent price trends for grains and inputs, and to account for differences in househol...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
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Wiley
2006
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/172207 |
| _version_ | 1855526111542247424 |
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| author | Heerink, Nico Kuiper, Marijke Shi, Xiaoping |
| author_browse | Heerink, Nico Kuiper, Marijke Shi, Xiaoping |
| author_facet | Heerink, Nico Kuiper, Marijke Shi, Xiaoping |
| author_sort | Heerink, Nico |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper analyses the impact of agricultural tax abolition and direct income payments to grain farmers on grain production and rural inequality in China. To separate the impact of the income support measures from recent price trends for grains and inputs, and to account for differences in household responses, we use a village-level general equilibrium model that we calibrate for two villages with different degrees of market access in Jiangxi province. The results show that the income support policy does not reach its goal of promoting grain production. The increased incomes allow farm households to buy more inputs for livestock production and involve other activities that are more profitable than grain farming. Selling of rice outside the villages declines more than rice production, because households in the villages consume more rice when incomes rise. We further find that the income support measures tend to reduce income within a village, but that tax abolition tends to widen income inequality between villages. |
| format | Journal Article |
| id | CGSpace172207 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2006 |
| publishDateRange | 2006 |
| publishDateSort | 2006 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1722072025-02-19T14:07:19Z China’s new rural income support policy: impacts on grain production and income inequality Heerink, Nico Kuiper, Marijke Shi, Xiaoping income rural areas income transfers taxes agricultural policies villages This paper analyses the impact of agricultural tax abolition and direct income payments to grain farmers on grain production and rural inequality in China. To separate the impact of the income support measures from recent price trends for grains and inputs, and to account for differences in household responses, we use a village-level general equilibrium model that we calibrate for two villages with different degrees of market access in Jiangxi province. The results show that the income support policy does not reach its goal of promoting grain production. The increased incomes allow farm households to buy more inputs for livestock production and involve other activities that are more profitable than grain farming. Selling of rice outside the villages declines more than rice production, because households in the villages consume more rice when incomes rise. We further find that the income support measures tend to reduce income within a village, but that tax abolition tends to widen income inequality between villages. 2006-11 2025-01-29T12:59:33Z 2025-01-29T12:59:33Z Journal Article https://hdl.handle.net/10568/172207 en Limited Access Wiley Heerink, Nico; Kuiper, Marijke; Shi, Xiaoping. 2006. China’s new rural income support policy: impacts on grain production and income inequality. China & World Economy 14(6): 58-69. https://doi.org/10.1111/J.1749-124X.2006.00045.X |
| spellingShingle | income rural areas income transfers taxes agricultural policies villages Heerink, Nico Kuiper, Marijke Shi, Xiaoping China’s new rural income support policy: impacts on grain production and income inequality |
| title | China’s new rural income support policy: impacts on grain production and income inequality |
| title_full | China’s new rural income support policy: impacts on grain production and income inequality |
| title_fullStr | China’s new rural income support policy: impacts on grain production and income inequality |
| title_full_unstemmed | China’s new rural income support policy: impacts on grain production and income inequality |
| title_short | China’s new rural income support policy: impacts on grain production and income inequality |
| title_sort | china s new rural income support policy impacts on grain production and income inequality |
| topic | income rural areas income transfers taxes agricultural policies villages |
| url | https://hdl.handle.net/10568/172207 |
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