An Empirical Analysis of the Effects of China’s Land Conversion Program on Farmers’ Income Growth and Labor Transfer |
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Authors: | Shunbo Yao Yajun Guo Xuexi Huo |
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Institution: | (1) College of Economics and Management, Northwest A&F University, 712100 Yangling, Shaanxi, China |
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Abstract: | In this article, we hypothesize that in addition to participation status and household characteristics, the impact of China’s
Sloping Land Conversion Program on income growth and labor transfer is determined by local economic conditions, program range,
and political leadership, and the degree of impact on income may vary among different economic sectors. To test these propositions,
we have compiled a panel data set of 600 households in three counties in the Loess Plateau region, with observations for times
both prior to and after the program’s inception (1999 and 2006), for both aggregate and categorical incomes, and for both
participating and non-participating households. Using a difference in differences model and repeated cross-sectional data,
we find that participation status, local economic conditions, program extent, and political leadership indeed have significant
impacts on household income and off-farm employment. Moreover, the effects of participation on crop production income, animal
husbandry income, and off-farm income vary substantially. These results carry major policy implications in terms of how to
improve the effectiveness and impact of ecological restoration efforts in and outside of China. |
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