Complementarity between Non-agricultural and Agricultural Shocks in Rural Industrialization: Evidence from China
September 14, 2016Poverty and Applied Microeconomics Seminar Series

Speaker: Jessica Leight is an Associate Professor of Economics at Williams College. More »

Abstract: This paper analyzes patterns of structural transformation in rural China using a newly assembled panel of county-level data including approximately 2000 counties between 2000 and 2010. More specifically, I estimate the impact of shocks to labor demand in the secondary (industrial) sector on local economic outcomes, and analyze whether there is any evidence of complementarity between these shocks and agricultural productivity shocks, proxied by county-level rainfall. The shock variables are constructed following Bartik (1991), employing the baseline composition of county employment and national fluctuations in sectoral employment. The empirical results indicate first, that there is a robust response to secondary labor demand shocks in terms of increased employment, GDP and value-added in the secondary sector, and increases in total GDP, and second, there is evidence of significant complementarity between these shocks and agricultural shocks, but only in counties that are initially less industrialized.


Last Updated: Sep 09, 2016

The Poverty and Applied Micro Seminar Series is a weekly series hosted by the World Bank's research department. The series invites leading researchers in applied microeconomics from the fields of poverty, human development and public service delivery, agriculture and rural development, political economy, behavioral economics, private sector development, and a range of other fields to present the results of their most recent research in a seminar format. The full list of seminars can be viewed here.

Event Details
  • Date: September 14, 2016
  • Location: MC 3-570
  • Time: 12:30 - 2:00 pm
  • CONTACT: Shweta Mesipam

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