Firm Strategy and Industrial Development in China
Edited by Mariko Watanabe
Chapter 9: Grains: marketing systems and agricultural technologies for low prices
Compared with the rapid development in China’s manufacturing sector, the steady growth in China’s agricultural sector attracts less attention. However, China is one of the world’s major agricultural countries; the total amount of rice and wheat, as well as other agricultural products such as fruits and meat products, ranks first in the world. As is well known, the GDP (gross domestic product) per capita in China with PPP (purchasing power parity) adjusted is much higher than that with exchange rate adjusted, and this is due to the fact that goods and services that do not enter into trade are much lower than those that do enter into trade (Naughton 2007: 225–226). Some of the most representative non-tradable goods are agricultural products, which are mainly consumed within the country. The low prices of agricultural products appear to contribute to the restriction of a rise in the total expenditure, resulting in one of the major sources of low factor price for industrial development. During the socialist era (1949–78), the livelihoods of the urban residents were supported by rationed foods distributed by state agencies, and the wages of urban workers were institutionally restricted to a low level. The mechanism of capital accumulation through low-wage labor continues to work even after the economic reforms implemented since 1978, as discussed in Chapter 10. Low-price foods are essential to urban residents, especially to the low-income groups and the migrant laborers.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.