MARKET DEVELOPMENT AND THE RISE AND FALL OF BACKYARD HOG PRODUCTION IN CHINA

Abstract

With economic growth, the share of backyard hog production has declined in China over the past two decades. However, as backyard hog production fell in the rich, coastal regions, the backyard hog production from less wealthy, inland provinces has increased. In this paper, we illustrate the linkage between market development and patterns of household livestock production in rural China. The results indicate that rural labor and grain market developments have significant effects on household hog production. Using household-level survey data, we find a distinctive inverted-U relationship between backyard livestock production and the stage of market development. Hence, market developments might foster the contraction of hog production in rich coastal areas and at the same time lead to an expansion in hog production in poor inland areas.