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The sources of total factor productivity growth in Chinese agriculture: technological progress or efficiency gain?

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  • Gucheng Li
  • Liangzhi You
  • Zhongchao Feng

Abstract

Provincial panel data from the agricultural sector and stochastic frontier production function model were employed to study the total factor productivity (TFP) growth since the 1980s in China. We decomposed the TFP growth into technological progress and technical efficiency changes (efficiency gains) as well as the aggregate agricultural TFP growth into crop-specific subsector's TFP growths. We found that Chinese agriculture experienced significant productivity growth in the last few decades, although the growth rates vary considerably among the subsectors. During this period, the source of productivity growth comes from either technological progress or efficiency gains, not from both of them simultaneously. Particularly since the 1990s, Chinese agriculture experienced a great technological progress and yet a considerable efficiency loss. The differences among sources of productivity growth and among subsectors call for distinct policy responses.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

Volume (Year): 9 (2011)
Issue (Month): 2 ()
Pages: 181-203

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Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:181-203

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Related research

Keywords: China's agriculture; total factor productivity; technological progress; technical efficiency; stochastic frontier production function;

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Cited by:
  1. Suresh, A., 2013. "Technical Change and Efficiency of Rice Production in India: A Malmquist Total Factor Productivity Approach," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2013).

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