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Article
Publication date: 2 May 2022

Kevin Z. Chen, Rui Mao and Yunyi Zhou

Challenges from the urban–rural disparity immensely burden the world's progress fulfilling Sustainable Development Goals and the goals' central promise, particularly for…

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Abstract

Purpose

Challenges from the urban–rural disparity immensely burden the world's progress fulfilling Sustainable Development Goals and the goals' central promise, particularly for developing countries experiencing rapid structural change and urbanization. A knowledge gap lies between the epistemology of urban–rural disparity and the practice of integrated urban-rural development. This paper aims to provide a new approach to bridge the knowledge gap based on the recent Chinese experience.

Design/methodology/approach

This qualitative research reviewed major economic and multidisciplinary studies regarding urban-rural development and the growth-equality tradeoff. Chinese experience is employed to showcase concrete challenges from the urban–rural disparity and how the proposed approach works for urban-rural integration.

Findings

Theoretical and practical approaches with urban bias largely fail to counter the challenges. Building on China's recent practice probing beyond urban bias, IFPRI (2019) proposes the term rurbanomics with a highlight of equalized urban-rural economic partnership, whereafter Zhou and Chen (2021) enrich the term into a conceptual framework. This paper further improves rurbanomics as a new viable approach to integrated urban-rural development under the overarching goal of common prosperity. The approach prioritizes driving forces in the economic, demographic, eco-environmental, social institutional and technological aspects for the policy community to leverage. Long-term mechanisms are decerned to link urban-rural integration to common prosperity.

Practical implications

China has leveraged ingredients of the rurbanomics approach in the political deployment to integrated urban-rural development. However, the application of this approach is yet to be adapted with local heterogeneities and live up to application's potential. Long-term mechanisms recommended by the rurbanomics approach will need to be carried out. Future improvements will need substantial theoretical extension and micro-level empirical studies.

Originality/value

This paper streamlines the epistemological shreds regarding pursuits, challenges, global experiences and theoretical approaches of urban-rural development. The paper also develops rurbanomics to navigate urban-rural integration, Sustainable Development Goals and common prosperity. By decerning long-term mechanisms in the Chinese case accordingly, this paper provides clues for other economies to employ the new approach.

Details

China Agricultural Economic Review, vol. 15 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 30 April 2024

Yanwen Tan, Ruixue Yue, Liru Chen, Congxi Li and Kevin Z. Chen

This paper aims to examine whether China's grain price support policy has distorted the grain market price.

Abstract

Purpose

This paper aims to examine whether China's grain price support policy has distorted the grain market price.

Design/methodology/approach

The time-varying differences-in-differences (DID) model is used to study the impact of support policies on grain prices, and it is combined with the event study method to explore the dynamic effects of price support policy. Panel data model is used to study the effect of the price support policy on price formation for national grain market prices. In addition, we apply the smooth transformation (STR) model to verify whether there is a distortion in the transmission of grain prices among different markets in China and from the international market to China’s market.

Findings

China’s grain price support policy plays a significant role in rising grain market prices, weakens the decisive role of the market mechanism in the formation of grain prices, hinders the spatial transmission of market price signals and decreases the effect of price transmission from the world market to China’s market.

Research limitations/implications

In order to ensure both the stability of grain production as well as the market stability, and also to ensure that intervention policies do not distort the food market, the minimum purchase price of grain and market regulation policies should be adjusted as follows: (1) price support policy should be shifted to an income support policy and (2) reasonably determine the scale of reserves and implement a grain minimum purchase price policy in limited areas.

Originality/value

Our findings are relevant for understanding the effect of China's grain price support policies on the implementation regions and the price transmission effect, which provide reference experience for developing countries to implement food price policies.

Details

China Agricultural Economic Review, vol. 16 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 20 August 2020

Kevin Z. Chen, Shenggen Fan and Yue Zhan

196

Abstract

Details

China Agricultural Economic Review, vol. 12 no. 3
Type: Research Article
ISSN: 1756-137X

Article
Publication date: 14 December 2018

Zihan Li, Yazhen Gong and Kevin Z. Chen

Rising energy expenditures due to more intensive use of energy in modern agriculture and increasing energy prices may affect rural households’ agricultural incomes, particularly…

Abstract

Purpose

Rising energy expenditures due to more intensive use of energy in modern agriculture and increasing energy prices may affect rural households’ agricultural incomes, particularly the incomes of the rural poor in developing countries. However, the exact link between energy costs and income among the rural poor needs further empirical investigation. The purpose of this paper is to develop a deeper understanding of the relationship between energy use and family income, using household-level panel data collected from 500 potato farmers in a poor region of Northern China, where eliminating poverty by 2020 is now the top government priority.

Design/methodology/approach

The paper uses household survey data collected from six counties in a poor region in northern China in 2013 to measure the relationship between energy cost and family income. A fixed effect model is employed to estimate the relationship.

Findings

The findings indicate that potatoes play an important role in the surveyed families’ incomes, and that the energy costs of potato production have a significant negative relationship with family income. However, this negative relationship is only significant for farmers with low economic standing, such as those living below or just above the poverty line. The negative relationship between energy costs and family income is only significant for those cultivating a certain size of potato-sown area; it is insignificant for those cultivating smaller areas.

Originality/value

These findings indicate that, in general, reducing energy costs helps the poor increase their income but is not necessarily helpful to those with high economic standing or a relatively small potato-sown area. If rural development policies are to support poverty reduction and energy savings (at least in major potato production regions), interventions aimed at energy cost reduction may be effective only for the poor whose family income depends, to a relatively high degree, on potato production.

Details

China Agricultural Economic Review, vol. 11 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 2 November 2015

Kevin Z Chen, Pramod K Joshi, Enjiang Cheng and Pratap S Birthal

The purpose of this paper is to synthesize lessons from the agricultural value chain models and their associated financing mechanisms in China and India as to provide policy…

4283

Abstract

Purpose

The purpose of this paper is to synthesize lessons from the agricultural value chain models and their associated financing mechanisms in China and India as to provide policy recommendations on how best to facilitate development of efficient and inclusive value chains.

Design/methodology/approach

The paper builds on a review of the existing literature on agricultural value chains and their financing mechanisms, and draws lessons from it for strengthening interface between product and financial markets in order to enable smallholders capture benefits of the value addition.

Findings

From the comparative review of value chain financing mechanisms and current policy contexts the authors find dominance of internal financing of value chains (in terms of provision of inputs, technology and services) in both the countries. Value chain finance from commercial banks and other financial institutions is limited and mainly through tripartite agreements among the financing institutions, lead firms and farmers.

Practical implications

The lessons drawn from various value chain models and their financing mechanisms provide feedback to financial institutions and policymakers to take measures to strengthen value chain finance in smallholder agriculture.

Originality/value

The paper undertakes a rigorous review of the existing value chain models and their financing mechanisms in light of the most recent research on emerging innovations and development strategies, in order to glean key lessons for policy recommendations on strengthening linkages between financial and product markets.

Details

China Agricultural Economic Review, vol. 7 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 2 November 2020

Hongdong Guo, Yehong Liu, Xinjie Shi and Kevin Z. Chen

The purpose of this study is to investigate e-commerce as a new means to ensure that the urban demand for food can be met during the coronavirus disease 2019 (COVID-19) outbreak…

8700

Abstract

Purpose

The purpose of this study is to investigate e-commerce as a new means to ensure that the urban demand for food can be met during the coronavirus disease 2019 (COVID-19) outbreak. Because a number of COVID-19 e-commerce models have emerged, this paper discusses whether and (if so) why and how e-commerce can ensure the food supply for urban residents if social distancing becomes a norm and the transport and logistics systems are hindered.

Design/methodology/approach

This study used qualitative research methods following the lack of empirical data. The authors referred to relevant literature, statistical data and official reports and comprehensively described the importance of e-commerce in ensuring the safety of food supply to Chinese urban residents under the impact of the epidemic. Corresponding to the traditional case study, this study presented a Chinese case on ensuring food supply through e-commerce during an epidemic.

Findings

The authors found that three e-commerce models played a substantial role in preventing the spread of the epidemic and ensuring the food supply for urban residents. The nationwide e-commerce platforms under market leadership played their roles by relying on the sound infrastructure of large cities and its logistics system was vulnerable to the epidemic. In the worst-affected areas, particularly in closed and isolated communities, the local e-commerce model was the primary model, supplemented by the unofficial e-commerce model based on social relations. Through online booking, centralized procurement and community distribution, the risk of cross infection could be effectively reduced and the food demand could be effectively satisfied. The theoretical explanation further verifies that, apart from e-commerce, a governance system that integrates the government, e-commerce platform, community streets and the unofficial guanxi also impels the success of these models.

Originality/value

Lessons from China are drawn for other countries struggling to deliver food to those in need under COVID-19. The study not only provides a solution that will ensure constant food supply to urban residents under the COVID-19 epidemic but also provides some reference for the maintenance of the food system of urban residents under the impact of a globalization-related crisis in future.

Details

China Agricultural Economic Review, vol. 13 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 9 August 2024

Kevin Z. Chen, Luyun Yu, Wen Lin and David L. Ortega

The purpose is to understand the factors affecting Chinese diet selections and propose strategies for revolutionizing Chinese diets toward healthy ones.

Abstract

Purpose

The purpose is to understand the factors affecting Chinese diet selections and propose strategies for revolutionizing Chinese diets toward healthy ones.

Design/methodology/approach

This study implemented an online discrete choice experiment to identify the factors affecting diet selections among urban Chinese consumers. Four different diet patterns were used to label each of the product alternatives in the experiment, which varied in taste and cost. Specifically, implying the healthiness and sustainability of a diet, the diet alternatives included the average diet, the Chinese Food Guide Pagoda diet, the EAT-Lancet diet and the Flexitarian diet. Using consumer data from six provincial capital cities, we used random parameter logit models to estimate their preferences.

Findings

Diet type and diet cost were found to be more important in urban Chinese consumers' diet selections than the ability to customize taste. The average diet, although not healthy and sustainable, was preferred most by respondents, signaling the challenges of shifting the consumer diet in China. Increasing the cost of the average diet can significantly promote sustainable healthy diet choices among urban Chinese residents. In other words, improving the affordability of sustainable healthy diets would have the potential to fuel the diet revolution in China.

Originality/value

Instead of choices of a single food item, this paper focused on the individual selection of a diet, where different food products can act as substitutes or as complements for one another. We also proposed a way to assess individual preferences and valuations for several different diets.

Details

China Agricultural Economic Review, vol. 16 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 2 July 2020

Yumei Zhang, Xinshen Diao, Kevin Z. Chen, Sherman Robinson and Shenggen Fan

The purpose of this study is to assess the potential economic cost of the COVID-19 pandemic on China's macroeconomy and agri-food system and provide policy recommendations to…

8232

Abstract

Purpose

The purpose of this study is to assess the potential economic cost of the COVID-19 pandemic on China's macroeconomy and agri-food system and provide policy recommendations to stimulate economic growth and agri-food system development.

Design/methodology/approach

An economy-wide multisector multiplier model built on China's most recent social accounting matrix (SAM) for 2017 with 149 economic sectors is used to assess the impact of COVID-19 on China's macroeconomy and agri-food system. SAM multiplier analysis focuses on supply chain linkages and captures the complexity of an interconnected economy.

Findings

The paper finds that both the macroeconomy and agri-food systems are hit significantly by COVID-19. There are three main findings. First, affected by COVID-19, GDP decreased by 6.8% in the first quarter of 2020 compared with that in 2019, while the economic loss of the agri-food system is equivalent to 7% of its value added (about RMB 0.26 trillion). More than 46m agri-food system workers (about 27% of total employment) lost their jobs to COVID-19 in the lockdown phase. The COVID-19 affects the employment of unskilled labor more than that of skilled labor. Second, when the economy starts to recover during the second and third quarters, the growth rate in the value added of the agri-food system turns positive but still modest. Many jobs resume during the period, but the level of agri-food system employment continues to be lower than the base. The agri-food system employment recovery is slower than that of other sectors largely due to the sluggish recovery of restaurants. Agri-food system employment drops by 8.6m, which accounts for about 33% of the total jobs lost. Third, although the domestic economy is expected to be normal in the fourth quarter, external demand still faces uncertainties due to the global pandemic. The agri-food system is projected to grow by 1.1% annually in 2020 with resuming export demand, while only by 0.4% without resuming export demand. These rates are much lower than an annual growth rate of 4.3% for the agri-food system in 2019. The results also show that, without resuming export demand, China's total economy will grow less than 1% in 2020, while, with export demand resumed, the growth rate rises to 1.7%. These rates are much lower than an annual GDP growth rate of 6.1% in 2019.

Practical implications

The results show that continuously reducing economic dependency on exports and stimulating domestic demand are key areas that require policy support. The agri-food system can play an important role in supporting broad economic growth and job creation as SMEs are major part of the AFS. Job creation requires policies to promote innovation by entrepreneurs who run numerous SMEs in China.

Originality/value

This paper represents the first systematic study assessing the impact of COVID-19 on China's agri-food system in terms of value added and employment. The assessment considers three phases of lockdown, recovery and normal phases in order to capture the full potential cost of COVID-19.

Details

China Agricultural Economic Review, vol. 12 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 7 September 2015

Jianying Wang, Kevin Z. Chen, Sunipa Das Gupta and Zuhui Huang

The farm size-productivity relationship has long been the subject of debate among development economists. Few studies address this issue for China, and those that do only with…

1047

Abstract

Purpose

The farm size-productivity relationship has long been the subject of debate among development economists. Few studies address this issue for China, and those that do only with outdated data sets poorly representing the current situation after the past decade of rapid change, which includes the rapid development of land rental markets, village labor out-migration and use of farm machines. Meanwhile, many studies have researched this relationship for Indian, which is undergoing similar changes except for the development of active land rental markets. The purpose of this paper is to measure the farm size-productivity relationship under the situations of rapid transformation in China and India.

Design/methodology/approach

Based on the data of 325 Jiangxi and 400 Allahabad rice farmers in 2011, the survey covered multiple plots of each household in one/multiple growing season(s). The authors use the production function approach and the yield approach, and control for farmland quality, imperfect factor markets, and farm size measurement error, to identify the farm size-productivity relationship.

Findings

The regressions show that land yields increase with plot size both by season and over the year in China. This may be one of the reasons that farm sizes are growing in some areas. In India, however, the inverse farm size-productivity relationship is observed by the study, despite recent changes. Moreover, land yields increase with farm machine use in both China and India. This result contributes to the debate over whether mechanization improves yields or just expands the land frontier.

Originality/value

The paper empirically estimates the farm size-productivity relationship under rapid agrarian transformation in both China and India based on a unique data set collected by the authors in a detailed primary survey. The paper considers measurement error in the analysis, which adds values to this type of analysis.

Details

China Agricultural Economic Review, vol. 7 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 28 January 2014

Kevin Z. Chen, Claire Hsu and Shenggen Fan

This paper aims to draw lessons from China's development experiences, particularly in the areas of agricultural and rural development, to increase growth and reduce poverty in…

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Abstract

Purpose

This paper aims to draw lessons from China's development experiences, particularly in the areas of agricultural and rural development, to increase growth and reduce poverty in Africa South of the Sahara. It also examines China's rising economic involvement in Africa and makes recommendations for how the win-win outcomes from this engagement can be strengthened.

Design/methodology/approach

In this paper, the authors compare the trends in economic and agricultural growth, as well as poverty and hunger reduction, in China and Africa South of the Sahara. The authors then examine strategies for development – in particular agricultural and rural development – and poverty reduction. Next, the authors review China's economic engagement in Africa in the areas of trade, investment, aid, and technical cooperation.

Findings

Having conducted a comparative review of China and Africa's distinct development paths and current policy contexts, the authors discuss China's development lessons for Africa South of the Sahara and policy recommendations for China-Africa engagement related to agricultural and rural development, openness and liberalization, evidence-based policymaking, pro-poor policies, institutions and capacity, rising inequality, and environmental degradation.

Originality/value

This paper rigorously integrates China's positive and negative development lessons for Africa in light of the most recent research on emerging domestic and international development strategies.

Details

China Agricultural Economic Review, vol. 6 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

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