This study by Shenggen Fan makes three important and original
contributions. It is the first study to report regional patterns of
productivity growth in Chinese agriculture. There have been
dramatic differences in output and productivity growth among
Chinese regions. The second contribution is to measure the separate
effects of technical change and institutional reform on
productivity growth. Much of the rapid growth in agricultural
production and in productivity since the late 1970s has been a
consequence of an important series of institutional reforms. The
third contribution is the first test of the induced innovation
hypothesis against experience in a centrally planned economy.
Regional patterns of productivity growth are consistent with the
hypothesis that the path of technical change has been responsive to
regional differences in resource endowments.
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