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Livestock in China: Commodity specific total factor productivity decomposition using new panel data

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Author Info
Rae, Allan
Ma, Hengyun
Huang, Jikun
Rozelle, Scott

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Abstract

Studies of total factor productivity in livestock production are rare, but when available provide useful information especially in the context of developing countries such as China where livestock is becoming more important in the domestic agricultural economy. We estimate total factor productivity (TFP) for four major livestock products in China employing the stochastic frontier approach, and decompose productivity growth into its technical efficiency and technical progress components. Efforts are made to adjust and augment the available livestock statistics. The results show that growth in TFP and its components varied between the 1980s and the 1990s as well as over production structures. While there is evidence of considerable technical innovation in China's livestock sector, technical efficiency improvement has been relatively slow.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19527.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19527

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Keywords: Stochastic production frontier; total factor productivity; technical efficiency and progress; China; livestock; adjusted panel data; Livestock Production/Industries; D240; Q100; Q160;

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  1. 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. [Downloadable!] (restricted)
  2. Alejandro Nin & Channing Arndt & Thomas W. Hertel & Paul V. Preckel, 2003. "Bridging the Gap between Partial and Total Factor Productivity Measures Using Directional Distance Functions," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(4), pages 928-942, November. [Downloadable!] (restricted)
  3. Guanghua Wan & Amelia U. Santos-Paulino, 2008. "Introduction," The World Economy, Blackwell Publishing, vol. 31(10), pages 1273-1276, October. [Downloadable!] (restricted)
  4. Kumbhakar, Subal C & Heshmati, Almas & Hjalmarsson, Lennart, 1999. " Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(3), pages 405-24, September. [Downloadable!] (restricted)
  5. Pratt, Alejandro Nin & Hertel, Thomas W. & Foster, Kenneth & Rae, Allan, 2001. "Productivity Growth And Catching-Up: Implications For China'S Trade In Livestock Products," 2001 Annual meeting, August 5-8, Chicago, IL 20590, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  6. Wu, Yanrui & Li, Elton & Samuel, S Nicholas, 1995. "Food Consumption in Urban China: An Empirical Analysis," Applied Economics, Taylor and Francis Journals, vol. 27(6), pages 509-15, June.
  7. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  8. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-74, October.
  9. Subal Kumbhakar & M. Denny & M. Fuss, 2000. "Estimation and decomposition of productivity change when production is not efficient: a paneldata approach," Econometric Reviews, Taylor and Francis Journals, vol. 19(4), pages 312-320. [Downloadable!] (restricted)
  10. Frank H. Fuller & Dermot J. Hayes & Darnell B. Smith, 1999. "Reconciling Chinese Meat Production and Consumption Data," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp210, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
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  11. Jones, Keithly & Arnade, Carlos, 2003. "A Joint Livestock-Crop Multi-Factor Relative Productivity Approach," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35157, Southern Agricultural Economics Association. [Downloadable!]
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