Diversify and prosper: Peasant households participating in emerging markets in northeast rural China |
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Authors: | Qingjie XIA Colin SIMMONS |
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Affiliation: | a University of Nottingham, University Park, Nottingham NG7 2RD, UK;b School of Accounting, Economics, and Management Sciences, University of Salford, Salford M5 4WT, UK |
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Abstract: | Following the sequence of radical rural reforms commencing in 1978, many peasant households in the People's Republic of China (PRC) have been actively diversifying away from time-honored grain production. This article examines the microlevel rewards accruing to a sample of village households located in the northeast province of Liaoning. In particular, we identify and then measure how such diversification affects household income, the level of employment, and the returns to labor. Two explanatory variables are constructed as surrogates for income-source diversification in a series of household production functions. Our results provide robust evidence that households that move from grain enhance significantly several indicators of their economic well-being. |
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Keywords: | China Peasant households Income-source diversification Employment Income-generating activities |
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