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This article examines the role of China’s gradual reforms in fostering food production by causally assessing China’s state policies of food market-rebuilding. To this aim we collect policy material on government food pricing, subsidies and procurement fund from central documents over the period of 1979-2006 and construct a dataset of policy implementation cost for estimation. Our causality test results indicate that fluctuations in food production were unidirectionally caused by food policy transformations determined by the “visible hand” of China’s reformist state aiming to guide the economy towards a simulated, price based market signal system

Getting food prices right: the state versus the market in reforming China, 1979–2006