IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2024i1p199-d1556972.html

Analysis of Resource Misallocation and Total Factor Productivity Losses in Green Agriculture: A Case Study of the North China Region

Author

Listed:
  • Linfang Chen

    (School of Environmental Studies, China University of Geosciences, Wuhan 430078, China)

  • Huanyu Sun

    (Yangzhuang Senior High School, Zhumadian 463900, China)

  • Shenghui Zhou

    (The College of Geography and Environmental Science, Henan University, Kaifeng 475000, China)

  • Shixing Jiao

    (School of Resources & Environment and Tourism, Anyang Normal University, Anyang 455002, China)

  • Xiao Zhao

    (The College of Geography and Environmental Science, Henan University, Kaifeng 475000, China)

  • Jianmei Cheng

    (School of Environmental Studies, China University of Geosciences, Wuhan 430078, China
    Hubei Key Laboratory of Yangtze Catchment Environmental Aquatic Science, China University of Geosciences, Wuhan 430078, China)

Abstract

The inefficient allocation of resources in agricultural production not only affects the quality of agricultural development and the efficiency of resource utilization but also represents a pivotal issue that constrains the sustainable progress of agriculture. Considering the urgent societal need for the optimization and advancement of industries, investigating the issue of resource misallocation within agricultural production and its specific losses on AGTFP is profoundly important in advancing the pursuit of high-quality and sustainable agricultural development. This study employs the Cobb–Douglas function and the theory of price distortion to establish a model for quantifying losses in Agricultural Green Total Factor Productivity (AGTFP). Drawing on provincial panel data from North China spanning the years 2006 to 2022, we analyze the characteristics of resource allocation and the corresponding losses in AGTFP. The findings suggest that AGTFP in North China has been gradually rising, accompanied by notable regional disparities in both the level of AGTFP and its growth rate. Nevertheless, due to the varying effects of distorted agricultural input factors, there exists different resource misallocation across North China. Despite some improvement in resource misallocation, this improvement has not been significant. Consequently, there is a loss of AGTFP in the North China region. If resource misallocation is effectively addressed, AGTFP losses could be reduced by at least 29%. It is anticipated that over the course of the next decade, AGTFP will rise and resource misallocation and AGTFP losses will diminish slightly, and it is crucial to step up efforts to enhance resource allocation. By ensuring adequate agricultural funding, enhancing agricultural efficiency, and optimizing energy inputs, it is possible to mitigate resource misallocation, thereby effectively diminishing AGTFP losses and fostering the sustainable advancement of agriculture.

Suggested Citation

  • Linfang Chen & Huanyu Sun & Shenghui Zhou & Shixing Jiao & Xiao Zhao & Jianmei Cheng, 2024. "Analysis of Resource Misallocation and Total Factor Productivity Losses in Green Agriculture: A Case Study of the North China Region," Sustainability, MDPI, vol. 17(1), pages 1-25, December.
    • Handle: RePEc:gam:jsusta:v:17:y:2024:i:1:p:199-:d:1556972
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/1/199/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/1/199/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yang Shen & Xiaoyang Guo & Xiuwu Zhang, 2023. "Digital Financial Inclusion, Land Transfer, and Agricultural Green Total Factor Productivity," Sustainability, MDPI, vol. 15(8), pages 1-25, April.
    2. Baylis, Kathy & Peplow, Stephen & Rausser, Gordon & Simon, Leo, 2008. "Agri-environmental policies in the EU and United States: A comparison," Ecological Economics, Elsevier, vol. 65(4), pages 753-764, May.
    3. Dias Avila, Antonio Flavio & Evenson, Robert E., 2010. "Total Factor Productivity Growth in Agriculture: The Role of Technological Capital," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 4, chapter 72, pages 3769-3822, Elsevier.
    4. Yang, Mian & Yang, Fuxia & Sun, Chuanwang, 2018. "Factor market distortion correction, resource reallocation and potential productivity gains: An empirical study on China's heavy industry sector," Energy Economics, Elsevier, vol. 69(C), pages 270-279.
    5. Tasso Adamopoulos & Loren Brandt & Jessica Leight & Diego Restuccia, 2022. "Misallocation, Selection, and Productivity: A Quantitative Analysis With Panel Data From China," Econometrica, Econometric Society, vol. 90(3), pages 1261-1282, May.
    6. Zhang, Qichen & Dong, Weihong & Wen, Chuanlei & Li, Tong, 2020. "Study on factors affecting corn yield based on the Cobb-Douglas production function," Agricultural Water Management, Elsevier, vol. 228(C).
    7. Feng Ye & Zhongna Yang & Mark Yu & Susan Watson & Ashley Lovell, 2023. "Can Market-Oriented Reform of Agricultural Subsidies Promote the Growth of Agricultural Green Total Factor Productivity? Empirical Evidence from Maize in China," Agriculture, MDPI, vol. 13(2), pages 1-20, January.
    8. Zhang, Xiaoheng & Hu, Lingxiao & Yu, Xiaohua, 2023. "Farmland Leasing, misallocation Reduction, and agricultural total factor Productivity: Insights from rice production in China," Food Policy, Elsevier, vol. 119(C).
    9. Zhou, Di & Hu, Yanning & Xie, Dongchun & Sun, Qiong, 2023. "Land resource mismatch and energy efficiency: Evidence from 243 cities in China," Energy Policy, Elsevier, vol. 183(C).
    10. Siying Hu & Shangkun Lu & Huiqiu Zhou, 2023. "Public Investment, Environmental Regulation, and the Sustainable Development of Agriculture in China Based on the Decomposition of Green Total Factor Productivity," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    11. Xingmei Jia, 2023. "Digital Economy, Factor Allocation, and Sustainable Agricultural Development: The Perspective of Labor and Capital Misallocation," Sustainability, MDPI, vol. 15(5), pages 1-19, March.
    12. Deng, Haiyan & Zheng, Wangyi & Shen, Zhiyang & Štreimikienė, Dalia, 2023. "Does fiscal expenditure promote green agricultural productivity gains: An investigation on corn production," Applied Energy, Elsevier, vol. 334(C).
    13. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    14. Huang, Junbing & Cai, Xiaochen & Huang, Shuo & Tian, Sen & Lei, Hongyan, 2019. "Technological factors and total factor productivity in China: Evidence based on a panel threshold model," China Economic Review, Elsevier, vol. 54(C), pages 271-285.
    15. Keijiro Otsuka & Yoko Kijima, 2010. "Technology Policies for a Green Revolution and Agricultural Transformation in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 19(suppl_2), pages 60-76.
    16. Hu, Yan & Che, Dexin & Wu, Fei & Chang, Xi, 2023. "Corporate maturity mismatch and enterprise digital transformation: Evidence from China," Finance Research Letters, Elsevier, vol. 53(C).
    17. Shilong Piao & Philippe Ciais & Yao Huang & Zehao Shen & Shushi Peng & Junsheng Li & Liping Zhou & Hongyan Liu & Yuecun Ma & Yihui Ding & Pierre Friedlingstein & Chunzhen Liu & Kun Tan & Yongqiang Yu , 2010. "The impacts of climate change on water resources and agriculture in China," Nature, Nature, vol. 467(7311), pages 43-51, September.
    18. Wu, Haitao & Hao, Yu & Ren, Siyu & Yang, Xiaodong & Xie, Guo, 2021. "Does internet development improve green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 153(C).
    19. Mingyong Hong & Mengjie Tian & Ji Wang, 2022. "Digital Inclusive Finance, Agricultural Industrial Structure Optimization and Agricultural Green Total Factor Productivity," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    20. Dimitrije Ruzic & Sui-Jade Ho, 2023. "Returns to Scale, Productivity, Measurement, and Trends in U.S. Manufacturing Misallocation," The Review of Economics and Statistics, MIT Press, vol. 105(5), pages 1287-1303, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juan Tang & Fangming Qin, 2022. "Analyzing the impact of local government competition on green total factor productivity from the factor market distortion perspective: based on the three stage DEA model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 14298-14326, December.
    2. Shuai Qin & Hong Chen & Tuyen Thi Tran & Haokun Wang, 2022. "Analysis of the Spatial Effect of Capital Misallocation on Agricultural Output—Taking the Main Grain Producing Areas in Northeast China as an Example," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    3. Liang, Benbo & He, Gailei & Wang, Yuran, 2024. "The digital economy, market integration and environmental gains," Global Finance Journal, Elsevier, vol. 60(C).
    4. You Xu & Zhe Zhao & Yi Zhang, 2025. "Can the Implementation of Carbon Emissions Trading Schemes Improve Prefecture-Level Agricultural Green Total Factor Productivity?," Sustainability, MDPI, vol. 17(13), pages 1-27, June.
    5. Jiang, Tangyang & Guo, Qimeng & Yu, Jinghan & Jahanger, Atif & Yu, Yang & Li, Xiaolong, 2025. "Spatial mismatch of resources in China under the “dual-carbon” goal: A new perspective incorporating energy and environmental factors," Energy, Elsevier, vol. 320(C).
    6. Ricardo Troncoso Sepúlveda, 2025. "Unlocking Agricultural Productivity: The Role of Land Rental Markets in Reducing Resource Misallocation," Agricultural Economics, International Association of Agricultural Economists, vol. 56(6), pages 1058-1078, November.
    7. Meixia Wang & Yunxia Wang, 2024. "Does Factor Market Distortion Inhibit Enterprise Innovation? Empirical Evidence from Chinese Industrial Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12830-12853, September.
    8. Troncoso Sepúlveda, Ricardo Andrés & Gil Roig, José María, 2025. "The role of government credit in enhancing agricultural productivity: Evidence from Chile," Economic Modelling, Elsevier, vol. 152(C).
    9. JIE Yang, 2023. "Factor price distortion among regions in China and its influence on China’s economic growth," PLOS ONE, Public Library of Science, vol. 18(4), pages 1-26, April.
    10. Jiangfeng Hu & Xiaofang Zhang & Tingting Wang, 2022. "Spatial Spillover Effects of Resource Misallocation on the Green Total Factor Productivity in Chinese Agriculture," IJERPH, MDPI, vol. 19(23), pages 1-23, November.
    11. Huiquan Li & Qingning Lin & Yan Wang & Shiping Mao, 2023. "Can Digital Finance Improve China’s Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 13(7), pages 1-19, July.
    12. Huiling Liu & Jianhua Zhang & Hongyun Huang & Haitao Wu & Yu Hao, 2023. "Environmental good exports and green total factor productivity: Lessons from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1681-1703, June.
    13. Tuanbiao Jiang & Min Zhong & Anrong Gao & Guoqun Ma, 2024. "Do Factor Misallocations Affect Food Security? Evidence from China," Agriculture, MDPI, vol. 14(5), pages 1-17, May.
    14. Zhu, Qingyuan & Xu, Chengzhen & Chen, Qingjuan & Wu, Liangpeng, 2024. "Oil price distortion and its impact on green economic efficiency in China’s transportation: A spatial effect perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    15. Luo, Haotian, 2025. "Does smart city construction exacerbate capital misallocation? Spatial spillovers, digital transformation, and robotics application," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 328-344.
    16. Ostadzad, Ali Hossein, 2022. "Innovation and carbon emissions: Fixed-effects panel threshold model estimation for renewable energy," Renewable Energy, Elsevier, vol. 198(C), pages 602-617.
    17. Chaoran Chen, 2017. "Untitled Land, Occupational Choice, and Agricultural Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 91-121, October.
    18. Julián Arteaga & Nicolás de Roux & Margarita Gáfaro & Ana María Ibáñez & Heitor S. Pellegrina, 2025. "Farm Size Distribution, Weather Shocks, and Agricultural Productivity," Borradores de Economia 1305, Banco de la Republica de Colombia.
    19. Senhua Huang & Lingming Chen, 2023. "The Impact of the Digital Economy on the Urban Total-Factor Energy Efficiency: Evidence from 275 Cities in China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    20. Lei Zhang & Lili Xu & Mingzi Gao & Mingdong Zhou, 2024. "Can Agricultural Credit Promote the Green Transformation of China’s Agriculture?," Sustainability, MDPI, vol. 16(24), pages 1-14, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2024:i:1:p:199-:d:1556972. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.