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Agricultural production mode transformation and production efficiency

Author

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  • Zimin Liu
  • Dan Yang
  • Tao Wen

Abstract

Purpose - The purpose of this paper is to analyze the impact of farmers’ agricultural production mode transformation, from the perspective of agricultural division of labor and cooperation, on their agricultural production efficiency including technical efficiency, pure technical efficiency and scale efficiency. Design/methodology/approach - This paper analyzes the impact of the agricultural production mode’s transformation on farmers’ agricultural production efficiency, based on the classical theory of division of labor and specialization, transaction costs and cooperation. It uses 2013 survey data from 396 farms in 15 Chinese provinces to explore the contributing factors of agricultural production efficiency using a double selection model (DSM), which can correct the endogenous selection bias in farmers’ decisions. Findings - Farmers that participate in agricultural division of labor and cooperation means transform their agricultural production from a traditional self-sufficient mode to one that is specialized and intensive. Agricultural division of labor measured by farmers’ participation in an agricultural division of labor in the production stages, or in agricultural products, and agricultural cooperation measured by farmers’ participation in farmers’ cooperatives significantly and positively influence their agricultural production efficiency after correcting farmers’ endogenous selection bias. Originality/value - This paper proposes a unified framework to analyze the impact of farmers’ agricultural production mode transformation on their production efficiency. Further, it builds a DSM for an empirical analysis to avoid the endogenous biases in farmers’ self-selection behavior. This paper also provides ways for policy makers to improve farmers’ agricultural production efficiency from the modern agricultural production perspective.

Suggested Citation

  • Zimin Liu & Dan Yang & Tao Wen, 2018. "Agricultural production mode transformation and production efficiency," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 11(1), pages 160-179, July.
    • Handle: RePEc:eme:caerpp:caer-07-2017-0129
    DOI: 10.1108/CAER-07-2017-0129
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    Citations

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    Cited by:

    1. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Muhammad Ihtisham & Badar Naseem Siddiqui & Shemei Zhang, 2022. "Can Cooperative Supports and Adoption of Improved Technologies Help Increase Agricultural Income? Evidence from a Recent Study," Land, MDPI, vol. 11(3), pages 1-18, March.
    2. Hu, Yue & Liu, Chang & Peng, Jiangang, 2021. "Financial inclusion and agricultural total factor productivity growth in China," Economic Modelling, Elsevier, vol. 96(C), pages 68-82.
    3. Yue Hu & Siwei Lu & Huiyuan Zhang & Guibo Liu & Jiangang Peng, 2021. "Empirical Analysis on the Performance of Rural Credit Cooperative’s Shareholding Reform Based on the Rationale of Isomorphic Incentive Compatibility," Sustainability, MDPI, vol. 13(5), pages 1-29, March.
    4. Zheng, Hongyun & Ma, Wanglin & Wang, Fang & Li, Gucheng, 2021. "Does internet use improve technical efficiency of banana production in China? Evidence from a selectivity-corrected analysis," Food Policy, Elsevier, vol. 102(C).
    5. Lilin Zou & Xumin Zheng & Yongsheng Wang, 2022. "Spatial‐temporal evolution and influence factors of China’s agricultural non‐point source pollution discharge intensity in recent 40 years," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1170-1189, September.

    More about this item

    Keywords

    Agricultural division of labour; Agricultural production efficiency; Agricultural production mode transformation; Endogenous selection bias; Farmers’ cooperatives; Q13; Q12; O15; O47;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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