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The Cost Of Wheat Diversity In China

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Author Info

  • Meng, Erika C.H.
  • Smale, Melinda
  • Rozelle, Scott
  • Ruifa, Hu
  • Huang, Jikun

Abstract

Initial efforts to estimate the effects on productivity of diversity among modern varieties in a production function framework have been unsatisfactory in at least two respects. First, the conventional primal approach estimates the marginal effects of diversity on technical efficiency but is unable to examine issues of allocative efficiency since it does not explicitly address producer behavior with respect to prices. Second, measures of genetic diversity used in previous studies may not have fully represented the diversity present in the crop. The development and incorporation of a biologically meaningful index of crop genetic diversity into an economic decision-making model is not straightforward. Previous studies have most often used diversity measures based on named varieties or pedigree information. In this paper, we employ recently developed methods to classify the wheat cultivars grown in China into morphology groups, constructing an index of spatial diversity adapted from the ecology literature using these groups and variety area shares. Since crop area allocations are choice variables, we specify crop genetic diversity as endogenous in a simultaneous system with a cost function and input shares. This approach provides a stronger conceptual linkage between crop genetic diversity, policy variables, and the economic decisions of farmers. The unique data source combines information on variety characteristics and variety area shares with policy, economic and environmental variables for the seven major wheat-producing provinces in China during the time period from 1982 to 1997. Results suggest that the crop genetic diversity, measured as the "equitability" of the spatial distribution of wheat morphology groups, has an economic cost. Future work will further investigate the relationship of crop genetic diversity to economic efficiency and policies.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1999 Annual meeting, August 8-11, Nashville, TN with number 21580.

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Date of creation: 1999
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Handle: RePEc:ags:aaea99:21580

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Keywords: Crop Production/Industries; Productivity Analysis;

References

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  1. Shenggen Fan, 2000. "Technological change, technical and allocative efficiency in Chinese agriculture: the case of rice production in Jiangsu," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(1), pages 1-12.
  2. Fan, Shenggen, 1997. "Production and productivity growth in Chinese agriculture: new measurement and evidence," Food Policy, Elsevier, vol. 22(3), pages 213-228, June.
  3. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  4. Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
  5. Fan, Shenggan & Pardey, Philip G., 1997. "Research, productivity, and output growth in Chinese agriculture," Journal of Development Economics, Elsevier, vol. 53(1), pages 115-137, June.
  6. Fan, Shenggen, 1990. "Effects Of Technological Change And Institutional Reform On Production Growth In Chinese Agriculture," Staff Papers 13454, University of Minnesota, Department of Applied Economics.
  7. Derek Byerlee & Edward Souza, 1997. "Wheat Rusts and the Costs of Genetic Diversity in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 726-737.
  8. Melinda Smale & Jason Hartell & Paul W. Heisey & Ben Senauer, 1998. "The Contribution of Genetic Resources and Diversity to Wheat Production in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 482-493.
  9. Jirong Wang & Eric J. Wailes & Gail L. Cramer, 1996. "A Shadow-Price Frontier Measurement of Profit Efficiency in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 146-156.
  10. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
  11. Lin, Justin Yifu, 1991. "The household responsibility system reform and the adoption of hybrid rice in China," Journal of Development Economics, Elsevier, vol. 36(2), pages 353-372, October.
  12. Brennan, John P. & Godden, David P. & Smale, Melinda & Meng, Erika C.H., 1999. "Variety Choice by Australian Wheat Growers and Implications for Genetic Diversity," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123785, Australian Agricultural and Resource Economics Society.
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Citations

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Cited by:
  1. Marasas, C.N. & Smale, Melinda & Singh, R.P., 2004. "The Economic Impact in Developing Countries of Leaf Rust Resistance Breeding in CIMMYT-Related Spring Bread Wheat," Economics Program Papers 48768, CIMMYT: International Maize and Wheat Improvement Center.
  2. Hartell, Jason G. & Smale, Melinda & Heisey, Paul W. & Senauer, Benjamin, 1997. "The Contribution of Genetic Resources and Diversity to Wheat Productivity: A Case from the Punjab of Pakistan," Economics Working Papers 7673, CIMMYT: International Maize and Wheat Improvement Center.
  3. Salvatore Falco & Melinda Smale & Charles Perrings, 2008. "The role of agricultural cooperatives in sustaining the wheat diversity and productivity: the case of southern Italy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(2), pages 161-174, February.

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