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Livestock in China: Commodity-specific Total Factor Productivity Decomposition Using New Panel Data

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  • Rae, Allan N.
  • Ma, Hengyun
  • Huang, Jikun
  • Rozelle, Scott

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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Bibliographic Info

Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2005 Conference, August 26-27, 2005, Nelson, New Zealand with number 98507.

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Date of creation: Aug 2005
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Handle: RePEc:ags:nzar05:98507

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Web page: http://www.nzares.org.nz/
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Related research

Keywords: Crop Production/Industries; Environmental Economics and Policy; Farm Management; Land Economics/Use; Production Economics; Productivity Analysis;

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References

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  1. Nin Pratt, Alejandro & Hertel, Thomas W. & Foster, Kenneth A. & Rae, Allan N., 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).
  2. Somwaru, Agapi & Zhang, Xiaohui & Tuan, Francis C., 2003. "China'S Hog Production Structure And Efficiency," 2003 Annual meeting, July 27-30, Montreal, Canada 22003, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Jones, Keithly G. & Arnade, Carlos A., 2003. "A Joint Livestock-Crop Multi-Factor Relative Productivity Approach," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35157, Southern Agricultural Economics Association.
  4. Frank H. Fuller & Dermot J. Hayes & Darnell B. Smith, 1999. "Reconciling Chinese Meat Production and Consumption Data," Center for Agricultural and Rural Development (CARD) Publications 99-wp210, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  5. Rutherford, A. S., 1999. "Meat and milk self-sufficiency in Asia: forecast trends and implications," Agricultural Economics, Blackwell, vol. 21(1), pages 21-39, August.
  6. Ehui, Simeon K. & Hertel, Thomas W. & Rae, Allan N. & Nin Pratt, Alejandro, 2000. "China: Will They Buy or Sell?," Choices, Agricultural and Applied Economics Association, vol. 15(3).
  7. Kumbhakar, Subal C & Heshmati, Almas & Hjalmarsson, Lennart, 1999. " Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(3), pages 405-24, September.
  8. Songqing Jin & Jikun Huang & Ruifa Hu & Scott Rozelle, 2002. "The Creation and Spread of Technology and Total Factor Productivity in China's Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 916-930.
  9. Nin, Alejandro & Arndt, Channing & Preckel, Paul V., 2003. "Is agricultural productivity in developing countries really shrinking? New evidence using a modified nonparametric approach," Journal of Development Economics, Elsevier, vol. 71(2), pages 395-415, August.
  10. 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.
  11. 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.
  12. 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, Agricultural and Applied Economics Association, vol. 85(4), pages 928-942.
  13. 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.
  14. 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.
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Citations

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Cited by:
  1. Fuller, Frank H. & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2005. "Got Milk? The Rapid Rise of China's Dairy Sector and Its Future Prospects," Staff General Research Papers 12363, Iowa State University, Department of Economics.
  2. Khan, Shahbaz & Hanjra, Munir A. & Mu, Jianxin, 2009. "Water management and crop production for food security in China: A review," Agricultural Water Management, Elsevier, vol. 96(3), pages 349-360, March.
  3. Jikun Huang & Yu Liu & Will Martin & Scott Rozelle, 2010. "Agricultural Trade Reform and Rural Prosperity: Lessons from China," NBER Chapters, in: China's Growing Role in World Trade, pages 397-423 National Bureau of Economic Research, Inc.
  4. Jikun Huang & Scott Rozelle, 2010. "Agricultural Development, Nutrition, and the Policies Behind China’s Success," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture, vol. 7(1), pages 93-126, June.
  5. Rae, Allan N., 2010. "A Rising Tide of Anti-Animal Consumerism? Issues and Opportunities," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96940, New Zealand Agricultural and Resource Economics Society.
  6. Huang, Jikun & Wu, Yunhua & Yang, Zhijian & Rozelle, Scott & Fabiosa, Jacinto & Dong, Fengxia, 2012. "Marketing China's milk: A case study of the sales activity of dairy farmers in greater Beijing," China Economic Review, Elsevier, vol. 23(3), pages 675-689.
  7. Songqing Jin & Hengyun Ma & Jikun Huang & Ruifa Hu & Scott Rozelle, 2010. "Productivity, efficiency and technical change: measuring the performance of China’s transforming agriculture," Journal of Productivity Analysis, Springer, vol. 33(3), pages 191-207, June.
  8. Tristan Le Cotty & Bruno Dorin, 2012. "A global foresight on food crop needs for livestock," Post-Print hal-00800715, HAL.
  9. Xiao, Hongbo & Wang, Jimin & Oxley, Les & Ma, Hengyun, 2012. "The evolution of hog production and potential sources for future growth in China," Food Policy, Elsevier, vol. 37(4), pages 366-377.
  10. Rae, Allan N., 2008. "China’s agriculture, smallholders and trade: driven by the livestock revolution?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.

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