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An Empirical Analysis of the Effects of China's Land Conversion Program on Farmers’ Income Growth and Labor Transfer

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Abstract

In this chapter, we hypothesize that in addition to participation status and household characteristics, the impacts of China's Sloping Land Conversion Program on income growth and labor transfer are determined by the local economic condition, program extent, and political leadership; and the income impacts may vary from sector to sector. To test these propositions, we compiled a dataset of 600 households in three counties of the Loess Plateau region, with observations for times both prior to and after the program initiation (1999 and 2006), both aggregate and categorical incomes, and both participating and non-participating households. Using a difference in differences model and the repeated cross-sectional data, we find that participation status, local economic condition, program extent, and political leadership have indeed made 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 impacts of ecological restoration efforts in and outside of China.

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Notes

  1. 1.

    This total investment is about US$32 billion, given the current exchange rate of $1=6.85 yuan.

  2. 2.

    Off-farm employment includes employment in local non-agricultural activities and off-village employment as migratory workers.

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Acknowledgments

This study is sponsored by the National “11th Five-Year Plan” Science and Technology Support Project (2006 BAD03A0308), the International Research Center of Sediment, project of “Study on Wuqi County Sustainable Development” (2005-01-10) and the Key Shaanxi Provincial Forestry Special project “Ecological Forest Policy Research.” The authors appreciate Professor Runsheng Yin for his careful editing.

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Correspondence to Shunbo Yao .

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Yao, S., Guo, Y., Huo, X. (2009). An Empirical Analysis of the Effects of China's Land Conversion Program on Farmers’ Income Growth and Labor Transfer. In: Yin, R. (eds) An Integrated Assessment of China's Ecological Restoration Programs. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-2655-2_10

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