Research on World Agricultural Economy

Reassessing Agricultural Investment in China: From 1952 to 2017

Qi Dong

Economic and Social Research Institute for Northeast Asia, University of Niigata Prefecture, 471 Ebigase, Higashi‑ku, Niigata 950–8680, Japan

DOI: https://doi.org/10.36956/rwae.v6i4.1709

Received: 1 January 2025 | Revised: 10 March 2025 | Accepted: 28 March 2025 | Published Online: 31 October 2025

---

Abstract

While the contributions of labor and productivity to agriculture have been extensively studied, agricultural investment and capital accumulation remain underexplored. This gap is largely due to a lack of relevant data, particularly in developing countries. In China, measuring agricultural investment poses significant challenges due to a complex statistical system and frequent changes in official data standards, especially before 1978. This study aimed to construct a comprehensive dataset on agricultural investment from 1952 to 2017, encompassing state-owned, collective, and household agriculture. To ensure consistency and reliability, different estimation methods were applied according to the data sources available in different periods. The analysis revealed that while collective farming was the dominant model before 1978, a substantial share of investment was directed toward state-owned agriculture. After the reform era, the introduction of the household responsibility system led to a surge in household agricultural investment, primarily funded through self-accumulation. However, by 2010, the share of government appropriations and agricultural loans began to decline, with non-household entities accounting for 50% of total agricultural investment. This shift indicates a move away from direct investment by peasant households toward service-oriented agricultural production. Investment in China’s agricultural sector exhibits significant cyclical patterns, influenced by economic policies and labor dynamics. Given recent challenges in food self-sufficiency and declining agricultural labor, reassessing agricultural investment levels is crucial for ensuring sustainable development.

Keywords: Agricultural Fixed Assets; State‑Owned Economy; Rural People’s Commune; Peasant Household Agri‑ culture

---

References

[1] Chow, G.C., 1993. Capital Formation and Economic Growth in China. Quarterly Journal of Economics. 108(3), 809–842. DOI: https://doi.org/10.2307/2118409

[2] Mody, A., Wang, F.Y., 1997. Explaining Industrial Growth in Coastal China: Economic Reforms… and What Else? The World Bank Economic Review. 11(2), 293–325. DOI: https://doi.org/10.1093/wber/11.2.293

[3] Yu, Q., 1998. Capital Investment, International Trade and Economic Growth in China: Evidence in the 1980–1990s. China Economic Review. 9(1), 73–84. DOI: https://doi.org/10.1016/S1043-951X(99)80005-4

[4] Hollister, W.W., 1958. China’s Gross National Product and Social Accounts, 1950–1957. The Free Press: Glencoe, IL, USA.

[5] Yeh, K.C., 1964. Capital Formation in Mainland China: 1931–1936 and 1952–1957 [Doctoral Dissertation]. Columbia University: New York, NY, USA. pp. 1–24.

[6] Cheng, C., 2020. China’s Allocation of Fixed Capital Investment, 1952–1957. University of Michigan Press: Ann Arbor, MI, USA.

[7] Li, R., 2010. The Calculation of China’s Capital Stock of Three Industries. Humanities & Social Sciences Journal of Hainan University. 2(28), 47–52. (in Chinese)

[8] Wu, F., 1999. Estimation of Agricultural Capital Stock of China. Journal of Agricultural Economics. 6, 34–38. (in Chinese)

[9] National Bureau of Statistics of China, 1981–2018. China Statistical Yearbook. China Statistics Press: Beijing, China. (in Chinese)

[10] Ministry of Agriculture and Rural Affairs, 2009. New China Agricultural Statistics for 60 Years. China Agriculture Press: Beijing, China. (in Chinese)

[11] Chinn, D.L., 1980. Cooperative Farming in North China. Quarterly Journal of Economics. 94(2), 279–297. DOI: https://doi.org/10.2307/1884541

[12] Lin, J.Y., 1990. Collectivization and China’s Agricultural Crisis in 1959–1961. Journal of Political Economy. 98(6), 1228–1252. DOI: https://doi.org/10.1086/261732

[13] Division of Rural Social and Economic Survey, National Bureau of Statistics of China, 1985–2018. China Rural Statistical Yearbook. China Statistics Press: Beijing, China. (in Chinese)

[14] Planning Division, Ministry of Agriculture and Rural Affairs, 1989. A Comprehensive Book of China Rural Economic Statistics, 1949–1986. China Agriculture Press: Beijing, China. (in Chinese)

[15] Division of Comprehensive Statistics for the National Economy of National Bureau of Statistics of China, 2010. China Compendium of Statistics 1949–2008. China Statistics Press: Beijing, China. (in Chinese)

[16] Division for Statistics for Fixed Assets Investment, National Bureau of Statistics of China, 2002. Statistics on Investment in Fixed Assets of China 1995–2000. China Statistics Press: Beijing, China. (in Chinese)

[17] Division for Statistics for Fixed Assets Investment, National Bureau of Statistics of China, 2002. Statistics on Investment in Fixed Assets of China 1950–2000. China Statistics Press: Beijing, China. (in Chinese)

[18] Division for Statistics for Fixed Assets Investment, National Bureau of Statistics of China, 1997. Statistical Yearbook of Chinese Investment in Fixed Assets 1950–1995. China Statistics Press: Beijing, China. (in Chinese)

[19] Council Office of All-China Federation of Supply and Marketing Cooperatives, 1989. Statistics on China’s Supply and Marketing Cooperatives 1949–1988. China Statistics Press: Beijing, China. (in Chinese)

[20] Ning, S., 2007. China Financial Statistics 1949–2005. China Statistics Press: Beijing, China. (in Chinese)

[21] Committee of Almanac of China’s Finance and Banking, 1986-2018. Almanac of China’s Finance and Banking. China Financial Yearbook Magazine Press: Beijing, China. (in Chinese)

[22] Ministry of Finance of China, 1992–2018. Finance Yearbook of China. China State Finance Magazine Press: Beijing, China. (in Chinese)

[23] Division for Foreign Trade Statistics of National Bureau of Statistics of China, 1990–2018. China Trade and External Economic Statistical Yearbook 1990–2018. China Statistics Press: Beijing, China. (in Chinese)

[24] Lewis, W.A., 1954. Economic Development with Unlimited Supplies of Labour. The Manchester School. 22, 139–191. DOI: https://doi.org/10.1111/j.1467-9957.1954.tb00021.x

[25] Fei, J.C.H., Ranis, G., 1961. Unlimited Supply of Labour and the Concept of Balanced Growth. The Pakistan Development Review. 1(3), 29–58.

[26] Jorgenson, D.W., 1967. Surplus Agricultural Labour and the Development of a Dual Economy. Oxford Economic Papers. 19(3), 288–312. DOI: https://doi.org/10.1093/oxfordjournals.oep.a041051

[27] Lin, J.Y., 1988. The Household Responsibility System in China’s Agricultural Reform: A Theoretical and Empirical Study. Economic Development and Cultural Change. 36(3), 199–224. DOI: https://doi.org/10.1086/edcc.36.s3.1566543

[28] Lin, J.Y., 1992. Rural Reforms and Agricultural Growth in China. American Economic Review. 82(1), 34–51.

[29] Minami, R., Mikano, F., 2014. Asian Long-Term Economic Statistics, 3 (China). Tokyo Keizai Shinposha: Tokyo, Japan. (in Japanese)

[30] Dong, Q., 2018. Agriculture and Economic Growth in China: Labor Transfers, Capital Accumulation, and Food Supply Reconsidered [Doctoral Dissertation]. The University of Tokyo: Tokyo, Japan. pp. 1–127.