Technical efficiency of food processing in China: the case of flour and rice processing
AbstractPurpose – The purpose of this paper is to examine the technical efficiency of wheat and paddy rice processing in China. Understanding the level of technical efficiency of food processing helps to decide whether efforts are warranted to improve this efficiency. Studies on China's technical efficiency of flour and rice processing are scarce. This paper fills this gap. Design/methodology/approach – With a unique set of firm-level survey data collected by China's State Statistical Bureau, this study adopts a stochastic frontier model to investigate the technical efficiency of flour and rice processing. Findings – The technical efficiency for both flour and rice processing is low in China, being only about 50 per cent. On average, rice processing firms have slightly higher technical efficiency than flour processing firms. It is also found that a significant proportion of firms experienced negative growth of technical efficiency during the time period of investigation. Originality/value – Each year, some 300 million tonnes of wheat and paddy rice are processed in China. Any small improvement in technical efficiency is translated into huge economic gains. Further, a tiny improvement in flour or rice output rate is equivalent to an enormous increase in food supply, contributing to China's food security. The paper confirms the need and potential to raise technical efficiency in China for wheat and paddy rice processing. JEL classification: Q13, D24
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal China Agricultural Economic Review.
Volume (Year): 3 (2011)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Find related papers by JEL classification:
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Chen, Zhuo & Huffman, Wallace & Rozelle, Scott, 2006.
"Farm Technology and Technical Efficiency: Evidence from Four Regions in China,"
Staff General Research Papers
12605, Iowa State University, Department of Economics.
- Chen, Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2009. "Farm technology and technical efficiency: Evidence from four regions in China," China Economic Review, Elsevier, vol. 20(2), pages 153-161, June.
- Wu, Ziping & Liu, Minquan & Davis, John, 2005. "Land consolidation and productivity in Chinese household crop production," China Economic Review, Elsevier, vol. 16(1), pages 28-49.
- Guang Wan & Enjiang Cheng, 2001. "Effects of land fragmentation and returns to scale in the Chinese farming sector," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 183-194.
- Zhuang, Renan & Abbott, Philip, 2007. "Price elasticities of key agricultural commodities in China," China Economic Review, Elsevier, vol. 18(2), pages 155-169.
- Xunpeng Shi & R. Grafton, 2010. "Efficiency impacts of the Chinese industrial transition: a quantitative evaluation of reforms in the coal industry," Economic Change and Restructuring, Springer, vol. 43(1), pages 1-19, February.
- Xu, Xiaosong & Jeffrey, Scott R., 1998. "Efficiency and technical progress in traditional and modern agriculture: evidence from rice production in China," Agricultural Economics, Blackwell, vol. 18(2), pages 157-165, March.
- Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics, Blackwell, vol. 15(1), pages 17-28, September.
- Wang, H. Holly & Ke, Bingfan, 2005. "Efficiency tests of agricultural commodity futures markets in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), June.
- Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
- Zheng, Zhihao & Henneberry, Shida Rastegari, 2010. "An Analysis of Food Grain Consumption in Urban Jiangsu Province of China," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(02), May.
- Tan, Shuhao & Heerink, Nico & Kruseman, Gideon & Qu, Futian, 2008. "Do fragmented landholdings have higher production costs? Evidence from rice farmers in Northeastern Jiangxi province, P.R. China," China Economic Review, Elsevier, vol. 19(3), pages 347-358, September.
- H. Holly Wang & Bingfan Ke, 2005. "Efficiency tests of agricultural commodity futures markets in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), pages 125-141, 06.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman).
If references are entirely missing, you can add them using this form.