Examines view of agricultural change which supposes that peasants in the traditional sector are sufficiently responsive to price stimuli from the export sector to permit changes in the quantity or composition of output. Points out statistical shortcomings and theoretical weaknesses of this point of view. Discusses presence of economic dualism and consequent role of middlemen as links between advanced and traditional sectors. Presents hypothesis that effectiveness of Chinese middlemen in transmitting information to the peasant sector depends on type of market operation. Suggests monopoly may prevent price fluctuations from being transmitted to peasant sector. Evaluates importance of technological constraints in inhibiting changes in agricultural output. [TAIC]
