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Agricultural growth dynamics and decision mechanism in Chinese provinces: 1988-2008

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  • Kang Yu
  • Xiangfei Xin
  • J. Alexander Nuetah
  • Ping Guo
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    Abstract

    Purpose – The purpose of this paper is to perform an investigative analysis of the distribution of agricultural growth in China and the evolution of the decision mechanism. Design/methodology/approach – The kernel density estimation method was used to investigate the distribution of agricultural growth in China using 1988-2008 panel data of the 29 provinces on the mainland. A nonparametric income distribution approach was employed to decompose China's agricultural output growth into farmland accumulation, capital deepening, labor-scale change, technical change, and efficiency change based on stochastic frontier function. A further investigation of the evolution of the decision mechanism for agricultural growth was then performed using counterfactual analysis. Findings – The results of this analysis indicate that: from 1996, the distribution of agricultural output per worker evolved from a unimodal into a bimodal distribution; technical change is the primary impetus to distribution shift; and capital deepening and efficiency change play a dominant role in the deformation of the distribution of agricultural output per worker from a unimodal to a bimodal distribution. Originality/value – The paper is an original work and its methodology makes a meaningful contribution to understanding China's agricultural growth. That is, the use of income distribution analysis method to analyze agricultural growth does not only allow a more in-depth understanding of the gap between regional agricultural growth rates, but also makes up for the existing lack of convergence in agricultural growth in China. JEL classification: D24, Q16, O47

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

    Volume (Year): 3 (2011)
    Issue (Month): 2 (May)
    Pages: 150-170

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    Handle: RePEc:eme:caerpp:v:3:y:2011:i:2:p:150-170

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    Related research

    Keywords: Agriculture; China; Decision making; Economic growth; Income;

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    References

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    1. Robert W. Mead, 2003. "A Revisionist View Of Chinese Agricultural Productivity?," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 117-131, 01.
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    13. Wu, Shunxiang, et al, 2001. "Productivity Growth and Its Components in Chinese Agriculture after Reforms," Review of Development Economics, Wiley Blackwell, vol. 5(3), pages 375-91, October.
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