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Policy Reform And Productivity Change In Chinese Agriculture: A Distance Function Approach

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  • Glauben, Thomas
  • Lu, Wencong C.
  • Brummer, Bernhard
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    Abstract

    Agricultural policy reform has been an important source of change in the Chinese agricultural sector. The reforms led to productivity growth and helped China in pursuing its self- sufficiency goal especially in the grain sector. To analyse whether observable productivity growth stems from technologically induced components, or from the market induced parts, a multi-input-multi-output model is derived using an econometric distance function framework. A decomposition allows to distinguish allocative effects, scale effects, technological change, and technical efficiency change. Data on farms in Zhejiang from 1986 to 1999 are used to analyse the impact of policy reform.

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    File URL: http://purl.umn.edu/25896
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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25896.

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    Date of creation: 2003
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    Handle: RePEc:ags:iaae03:25896

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    Keywords: Agricultural and Food Policy;

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    1. Carter, Colin A. & Estrin, Andrew J., 2001. "Market Reforms Versus Structural Reforms In Rural China," Working Papers 11965, University of California, Davis, Department of Agricultural and Resource Economics.
    2. 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.
    3. Huang,Yiping, 1998. "Agricultural Reform in China," Cambridge Books, Cambridge University Press, number 9780521620550, October.
    4. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    5. 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.
    6. Bernhard Br�mmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
    7. 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.
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