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The Impact of Trade on Scale Efficiency in Grain and Oil-Bearing Plant Production in China

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  • Fumin Deng
  • Hui Zhu
  • Ying Huang
  • Xuedong Liang

Abstract

Taking advantage of annual data on the production of rice, wheat, maize (corn), soybeans, and oil-bearing plants in China, we calculate scale efficiencies of product yields and product output values from 1992 to 2016 using a variable return to scale–super efficiency model (VRS-SEM). The trade factors from supply and demand are verified using an error correction model (ECM). Apart from the description of different characteristics of products, the findings show the weak competiveness of grain and oil-bearing plants in international market, especially in soybean products as well as cost problems in scale production in the three major staple foods.

Suggested Citation

  • Fumin Deng & Hui Zhu & Ying Huang & Xuedong Liang, 2021. "The Impact of Trade on Scale Efficiency in Grain and Oil-Bearing Plant Production in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(2), pages 322-334, January.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:322-334
    DOI: 10.1080/1540496X.2018.1517645
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