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Did Agricultural Technological Changes Affect China¡¯s Regional Disparity?

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Did Agricultural Technological Changes Affect China¡¯s Regional Disparity?

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) No 803, Working Papers from China Agricultural University, College of Economics and Management Abstract: China¡¯s agricultural sector has developed very rapidly in the past 30 years and agricultural technological progress is deemed as one of the most substantial factors leading to China¡¯s rapid agricultural GDP growth. In this paper we assess the impacts of agricultural technological changed on regional disparity with a general equilibrium model of multiple regions and multiple sectors. Our results suggest that agricultural technological changes significantly reduced China¡¯s agricultural regional disparity and accounted for 40% reduction of agricultural regional disparity in terms of agricultural GDP per capita. Agricultual technological changes, however, led to an increase of China¡¯s overall regional disparity and accounted for 6% increase of China¡¯s overall regional disparity in terms per capita GDP.

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