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Farm Technology and Technical Efficiency: Evidence from Four Regions in China

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Author Info
Chen, Zhuo
Huffman, Wallace
Rozelle, Scott

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Abstract

In this paper we fit stochastic frontier production functions to data for Chinese farms grouped into each of four regions—North, Northeast, East, and Southwest—over 1995-1999. These frontier production functions are shown to have statistically different structures, and the marginal product information shows overuse of chemical inputs in the East and capital services in the North. Labor also has a low marginal product. Next, we use the data and the production parameters to create technical efficiency scores for each of the farms and then standardize them. Standardized technical efficiency is shown to have the same structure across regions and to be related to the age of the farmer, land fragmentation, and the village migration rate, controlling for year dummies and village or regional fixed effects.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12605.

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Length: 25 pages
Date of creation: 01 May 2006
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Handle: RePEc:isu:genres:12605

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Related research
Keywords: Household farm; Labor migration; Land fragmentation; Stochastic production frontier; Technical efficiency;

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Find related papers by JEL classification:
C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
O1 - Economic Development, Technological Change, and Growth - - Economic Development
P2 - Economic Systems - - Socialist Systems and Transition Economies

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  1. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, vol. 10(1), pages 27-37, January. [Downloadable!] (restricted)
  2. Huffman, Wallace E, 1977. "Allocative Efficiency: The Role of Human Capital," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 59-79, February. [Downloadable!] (restricted)
  3. Liu, Zinan & Zhuang, Juzhong, 2000. "Determinants of Technical Efficiency in Post-Collective Chinese Agriculture: Evidence from Farm-Level Data," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 545-564, September. [Downloadable!] (restricted)
  4. Zhang, Xiaobo & Fan, Shenggen, 2001. " Estimating Crop-Specific Production Technologies in Chinese Agriculture: A Generalized Maximum Entropy Approach," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(2), pages 378-88, May. [Downloadable!] (restricted)
    Other versions:
  5. Rozelle, Scott, et al, 2000. "Bureaucrat to Entrepreneur: The Changing Role of the State in China's Grain Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 227-52, January.
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  10. Huffman, Wallace E., 2001. "Human capital: Education and agriculture," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 7, pages 333-381 Elsevier. [Downloadable!] (restricted)
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  20. Shenggen Fan & Xiaobo Zhang & Sherman Robinson, 2003. "Structural Change and Economic Growth in China," Review of Development Economics, Blackwell Publishing, vol. 7(3), pages 360-377, 08. [Downloadable!] (restricted)
  21. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics, Blackwell, vol. 15(1), pages 17-28, September. [Downloadable!] (restricted)
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  1. Monchuk, Daniel C. & Zhuo, Chen, 2008. "Explaining Production Inefficiency in China’s Agriculture using Data Envelope Analysis and Semi-Parametric Bootstrapping," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6456, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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