The impact of agricultural technology adoption on income inequality in rural China: Evidence from southern Yunnan Province

This study analyzes the impact on income inequality of government efforts to increase agricultural incomes in rural China. It collects and analyzes survey data from 473 households in Yunnan, China in 2004. In particular, it investigates the effects of government efforts to promote improved upland rice technologies. Our analysis shows that farmers who adopted these technologies had incomes approximately 15% higher than non-adopters. Despite this relatively large increase, we estimate that the impact on income inequality was relatively slight. This is primarily due to the fact that lower-income farmers adopted the improved rice technology at rates that were roughly equivalent to those of higher-income farmers.

Research highlights► We study how improved rice technology affects income inequality in rural China. ► Our sample consists of 473 households from southern Yunnan Province. ► Technology adopters had incomes 14-16% higher than non-adopters. ► The rate of technology adoption was spread proportionally across income categories. ► As a result, the improved rice technology did not affect income inequality.