Transaction costs and peasants' choice of institutions: did the right to exit really solve the free rider problem in Chinese collective agriculture?

Article Abstract:

The theory of decollectivism in Chinese agriculture from 1959-61 presented by Justin Lin can be contradicted historically by two pieces of evidence. First, monitoring was an essential element in the large and complex collective system based on piece-rate contracts. Second, peasants usually could not afford to exercise their right to leave and join the collectives, often due to coercion from the local cadres who forced them to join in the first place. The peasants, therefore, actually were deterred from withdrawing from collective farming.

Human resource management, Collective farms

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China's regional grain self-sufficiency policy and its effect on land productivity

Article Abstract:

Two hypotheses have been developed to account for the negative growth and stagnation of agricultural productivity in China during the collective period and the fast growth after reforms. The first hypothesis is called the institutional hypothesis. The second hypothesis attributes the decline to the government's extrinsic policies. Provincial data applied to a counterfactual method with 1952 as a benchmark revealed land productivity gains resulting from the regional grain self-sufficiency policy.

Agricultural productivity, Autarchy

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Equal entitlement versus tenure security under a regime of collective property rights: peasants' preference for institutions in post-reform Chinese agriculture

Article Abstract:

Rural household survey results covering four grain-producing counties in the Chinese provinces of Hunan and Sichuan showed no basis for concluding that farmholding changes or tenure insecurity negatively affected investment incentive in staple crop agriculture. Areas that had limited employment markets beyond farming revealed peasant acceptance of readjusting holdings as an institutional practice.

Agricultural industry, Economic aspects, Economic security

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