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Total factor productivity growth in China's agricultural sector

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  • Chen, Po-Chi
  • Yu, Ming-Miin
  • Chang, Ching-Cheng
  • Hsu, Shih-Hsun

Abstract

A panel dataset of 29 provinces in China is used to analyze the productivity growth in China's agricultural sector over the period 1990-2003. We compute the output-oriented Malmquist productivity indexes and their decomposition using a sequential data envelopment analysis approach. The results indicate that the major source of productivity growth is technical progress and that the regional disparities in productivity growth worsen over time. The second stage regression results show that the main determinants of technical progress are agricultural tax cut, public investment in R&D and infrastructure, as well as mechanization while market reform, education and disaster mitigations are associated with efficiency improvement. The deterioration in scale efficiency, however, suggests a transition problem in relation to mechanization and highlights the importance of structural adjustment facilitations.

Suggested Citation

  • Chen, Po-Chi & Yu, Ming-Miin & Chang, Ching-Cheng & Hsu, Shih-Hsun, 2008. "Total factor productivity growth in China's agricultural sector," China Economic Review, Elsevier, vol. 19(4), pages 580-593, December.
  • Handle: RePEc:eee:chieco:v:19:y:2008:i:4:p:580-593
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    References listed on IDEAS

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    Cited by:

    1. Sethi, Amarjit Singh, 2016. "Sources of Growth in India: Evidence from Punjab and Haryana," Journal of Regional Development and Planning, JRDP, vol. 5(1), pages 15-34.
    2. C. J. O’Donnell & Saeideh Fallah-Fini & Konstantinos Triantis, 2017. "Measuring and analysing productivity change in a metafrontier framework," Journal of Productivity Analysis, Springer, vol. 47(2), pages 117-128, April.
    3. Ke Li & Malin Song, 2016. "Green Development Performance in China: A Metafrontier Non-Radial Approach," Sustainability, MDPI, Open Access Journal, vol. 8(3), pages 1-21, March.
    4. Ma, Hengyun & Oxley, Les, 2011. "Are China's energy markets cointegrated?," China Economic Review, Elsevier, vol. 22(3), pages 398-407, September.
    5. Ma, Shuzhong & Feng, Han, 2013. "Will the decline of efficiency in China's agriculture come to an end? An analysis based on opening and convergence," China Economic Review, Elsevier, vol. 27(C), pages 179-190.
    6. Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2011. "An analysis on technical efficiency in post-reform China," China Economic Review, Elsevier, vol. 22(3), pages 357-372, September.
    7. Chloé Duvivier, 2013. "Does Urban Proximity Enhance Technical Efficiency? Evidence From Chinese Agriculture," Journal of Regional Science, Wiley Blackwell, vol. 53(5), pages 923-943, December.
    8. Li, Zongzhang & Ma, Yanan, 2015. "Rural Education, Technological Progress and Productivity Growth in China's Agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 212048, International Association of Agricultural Economists.
    9. repec:aoj:agafsr:2017:p:37-44 is not listed on IDEAS
    10. Boussemart, Jean Philippe & Leleu, Hervé & Shen, Zhiyang, 2015. "Environmental growth convergence among Chinese regions," China Economic Review, Elsevier, vol. 34(C), pages 1-18.
    11. Chen, Shiyi & Jefferson, Gary H. & Zhang, Jun, 2011. "Structural change, productivity growth and industrial transformation in China," China Economic Review, Elsevier, vol. 22(1), pages 133-150, March.
    12. Yang, Fuxia & Yang, Mian & Nie, Hualin, 2013. "Productivity trends of Chinese regions: A perspective from energy saving and environmental regulations," Applied Energy, Elsevier, vol. 110(C), pages 82-89.
    13. Ito, Junichi, 2010. "Inter-regional difference of agricultural productivity in China: Distinction between biochemical and machinery technology," China Economic Review, Elsevier, vol. 21(3), pages 394-410, September.
    14. repec:eee:deveco:v:132:y:2018:i:c:p:18-31 is not listed on IDEAS
    15. Chen, Shuzhang & Oxley, Les & Xu, Zheng & Wang, Yanqing & Ma, Hengyun, 2013. "The dynamic adjustment of factor inputs and its policy implications for major wheat producing areas in China," Economic Modelling, Elsevier, vol. 33(C), pages 450-457.
    16. Horta, I.M. & Camanho, A.S. & Moreira da Costa, J., 2012. "Performance assessment of construction companies: A study of factors promoting financial soundness and innovation in the industry," International Journal of Production Economics, Elsevier, vol. 137(1), pages 84-93.
    17. Molinos-Senante, María & Maziotis, Alexandros & Sala-Garrido, Ramón, 2014. "The Luenberger productivity indicator in the water industry: An empirical analysis for England and Wales," Utilities Policy, Elsevier, vol. 30(C), pages 18-28.
    18. Wang, Zhaohua & Feng, Chao, 2015. "Sources of production inefficiency and productivity growth in China: A global data envelopment analysis," Energy Economics, Elsevier, vol. 49(C), pages 380-389.
    19. Teodor HADA & Nicoleta BARBUTA-MISU & Teodora Maria AVRAM, 2016. "Financial CEMATT Method: a New Approach for Performance Assessment using Accounting Information," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 10-17.
    20. Pääkkönen, Jenni, 2009. "Are there industrial and agricultural convergence clubs in China?," BOFIT Discussion Papers 15/2009, Bank of Finland, Institute for Economies in Transition.
    21. Wang, Zhaohua & Feng, Chao, 2015. "A performance evaluation of the energy, environmental, and economic efficiency and productivity in China: An application of global data envelopment analysis," Applied Energy, Elsevier, vol. 147(C), pages 617-626.

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