Misallocation, Selection, and Productivity: A Quantitative Analysis With Panel Data From China
York University · University of Toronto
Abstract
We use household‐level panel data from China and a quantitative framework to document the extent and consequences of factor misallocation in agriculture. We find that there are substantial within‐village frictions in both the land and capital markets linked to land institutions in rural China that disproportionately constrain the more productive farmers. These frictions reduce aggregate agricultural productivity by affecting two key margins: (1) the allocation of resources across farmers (misallocation) and (2) the allocation of workers across sectors, in particular the type of farmers who operate in agriculture (selection). Selection substantially amplifies the productivity effect of distortionary policies by…
Citation impact
- FWCI
- 29.73
- Percentile
- 100%
- References
- 38
Authors
4Topics & keywords
- Productivity
- Agriculture
- Panel data
- Economics
- China
- Selection (genetic algorithm)
- Capital (architecture)
- Agricultural productivity
- Zero hunger
Funding
- IMInternational Myeloma Foundation
- DUDuke University
- OSOhio State University
- CUCornell University
- MUMcGill University
- MUMcMaster University
- NBNational Bureau of Economic Research
- BOBank of Canada
- EEEuropean Environment Agency
- NUNational University of Singapore
- CRCanada Research Chairs
- BDBanca d'Italia
- EIEinaudi Institute for Economics and Finance
- UOUniversity of British Columbia
- UDUniversitat de Barcelona
- HKHong Kong University of Science and Technology
- SSSocial Sciences and Humanities Research Council of Canada