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Technical Efficiency Of Chinese Grain Production: A Stochastic Production Frontier Approach

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Author Info
Chen, Adam Zhuo
Huffman, Wallace E.
Rozelle, Scott
Abstract

This article examines technical efficiency of the Chinese grain sector using the framework of stochastic production frontier. The results reveal that: the marginal products of labor and fertilizer are much smaller than that of land; human capital and farm-level specialization have positive effect on efficiency, land fragmentation is detrimental to efficiency, and elder farmers are as efficient as younger farmers. We also examine the effects of size, mechanization and geographic location. Simulation results show that significant output gains can be obtained by eliminating land fragmentation, improving rural education and promoting specialization and mechanization.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22116.

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Date of creation: 2003
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Handle: RePEc:ags:aaea03:22116

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Keywords: Crop Production/Industries; Productivity Analysis;

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  1. Widawsky, David & Rozelle, Scott & Jin, Songqing & Huang, Jikun, 1998. "Pesticide productivity, host-plant resistance and productivity in China," Agricultural Economics, Blackwell, vol. 19(1-2), pages 203-217, September. [Downloadable!] (restricted)
  2. Herriges, Joseph A. & Kling, Catherine L., 1996. "Testing the consistency of nested logit models with utility maximization," Economics Letters, Elsevier, vol. 50(1), pages 33-39, January. [Downloadable!] (restricted)
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  3. Abdulai, Awudu & Huffman, Wallace, 2000. "Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 503-20, April.
  4. Yang, Dennis, 1995. "Education and Off-Farm Work," Working Papers 95-09, Duke University, Department of Economics.
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  5. Greene, William H., 1980. "Maximum likelihood estimation of econometric frontier functions," Journal of Econometrics, Elsevier, vol. 13(1), pages 27-56, May. [Downloadable!] (restricted)
  6. Huang, Jikun & Rozelle, Scott & Rosegrant, Mark W., 1995. "China and the future global food situation," 2020 vision briefs 20, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Li, Guo & Rozelle, Scott & Brandt, Loren, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics, Blackwell, vol. 19(1-2), pages 63-71, September. [Downloadable!] (restricted)
  8. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
  9. Wan, Guang H & Cheng, Enjiang, 2001. "Effects of Land Fragmentation and Returns to Scale in the Chinese Farming Sector," Applied Economics, Taylor and Francis Journals, vol. 33(2), pages 183-94, February. [Downloadable!] (restricted)
  10. Christopher Findlay, . "Grain Sector Reform In China," Working Papers 97_1, Chinese Economies Research Centre.
  11. Benjamin, Dwayne & Brandt, Loren & Giles, John, 2005. "The Evolution of Income Inequality in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 769-824, July.
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  12. de Brauw, Alan & Huang, Jikun & Rozelle, Scott, 2002. "Sequencing And The Success Of Gradualism: Empirical Evidence From China'S Agricultural Reform," Working Papers 11994, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
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  13. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200. [Downloadable!] (restricted)
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  14. Guilkey, David K & Lovell, C A Knox & Sickles, Robin C, 1983. "A Comparison of the Performance of Three Flexible Functional Forms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 591-616, October. [Downloadable!] (restricted)
  15. Putterman, Louis & Chiacu, Ana F., 1994. "Elasticities and factor weights for agricultural growth accounting: A look at the data for China," China Economic Review, Elsevier, vol. 5(2), pages 191-204. [Downloadable!] (restricted)
  16. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211. [Downloadable!] (restricted)
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