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Livestock in China: Commodity-Specific Total Factor Productivity Decomposition Using New Panel Data

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  • Allan N. Rae
  • Hengyun Ma
  • Jikun Huang
  • Scott Rozelle

Abstract

Studies of total factor productivity (TFP) in livestock production are rare, but when available provide useful information especially in the context of developing countries such as China where livestock is becoming more important in the domestic agricultural economy. We estimate TFP for four major livestock products in China employing the stochastic frontier approach, and decompose productivity growth into its technical efficiency (TE) and technical progress components. Efforts are made to adjust and augment the available livestock statistics. The results show that growth in TFP and its components varied between the 1980s and the 1990s as well as over production structures. While there is evidence of considerable technical innovation in China's livestock sector, TE improvement has been relatively slow. Copyright 2006, Oxford University Press.

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  • Allan N. Rae & Hengyun Ma & Jikun Huang & Scott Rozelle, 2006. "Livestock in China: Commodity-Specific Total Factor Productivity Decomposition Using New Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 680-695.
  • Handle: RePEc:oup:ajagec:v:88:y:2006:i:3:p:680-695
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    Cited by:

    1. Allan N. Rae & Xiaohui Zhang, 2009. "China's booming livestock industry: household income, specialization, and exit," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 603-616, November.
    2. Kellermann, Magnus A., 2015. "Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), April.
    3. Tristan Le Cotty & Bruno Dorin, 2012. "A global foresight on food crop needs for livestock," Post-Print hal-00800715, HAL.
    4. Rae, Allan N., 2010. "A Rising Tide of Anti-Animal Consumerism? Issues and Opportunities," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96940, New Zealand Agricultural and Resource Economics Society.
    5. Tian, Xu & Sun, Feifei & Zhou, Yingheng, 2015. "Technical Efficiency and Its Determinants in China's Hog Production," 2015 Conference, August 9-14, 2015, Milan, Italy 212718, International Association of Agricultural Economists.
    6. Jikun Huang & Scott Rozelle, 2010. "Agricultural Development, Nutrition, and the Policies Behind China's Success," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 93-126, June.
    7. Huang, Jikun & Wu, Yunhua & Yang, Zhijian & Rozelle, Scott & Fabiosa, Jacinto & Dong, Fengxia, 2012. "Marketing China's milk: A case study of the sales activity of dairy farmers in greater Beijing," China Economic Review, Elsevier, vol. 23(3), pages 675-689.
    8. Rae, Allan N., 2008. "China’s agriculture, smallholders and trade: driven by the livestock revolution?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.
    9. Khan, Shahbaz & Hanjra, Munir A. & Mu, Jianxin, 2009. "Water management and crop production for food security in China: A review," Agricultural Water Management, Elsevier, vol. 96(3), pages 349-360, March.
    10. Zhu, Shu & Xu, Xin & Ren, Xiaojing & Sun, Tianhua & Oxley, Les & Rae, Allan & Ma, Hengyun, 2016. "Modeling technological bias and factor input behavior in China's wheat production sector," Economic Modelling, Elsevier, vol. 53(C), pages 245-253.
    11. Allan Rae, 2008. "China's agriculture, smallholders and trade: driven by the livestock revolution? ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 283-302, September.
    12. Xiaoheng Zhang & Feng Chu & Xiaohua Yu & Yingheng Zhou & Xu Tian & Xianhui Geng & Jinyang Yang, 2017. "Changing Structure and Sustainable Development for China’s Hog Sector," Sustainability, MDPI, Open Access Journal, vol. 9(1), pages 1-15, January.
    13. Jikun Huang & Yu Liu & Will Martin & Scott Rozelle, 2010. "Agricultural Trade Reform and Rural Prosperity: Lessons from China," NBER Chapters,in: China's Growing Role in World Trade, pages 397-423 National Bureau of Economic Research, Inc.
    14. Xiaobing Wang & Futoshi Yamauchi & Jikun Huang, 2016. "Rising wages, mechanization, and the substitution between capital and labor: evidence from small scale farm system in China," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 309-317, May.
    15. Xiao, Hongbo & Wang, Jimin & Oxley, Les & Ma, Hengyun, 2012. "The evolution of hog production and potential sources for future growth in China," Food Policy, Elsevier, vol. 37(4), pages 366-377.
    16. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.
    17. Songqing Jin & Hengyun Ma & Jikun Huang & Ruifa Hu & Scott Rozelle, 2010. "Productivity, efficiency and technical change: measuring the performance of China’s transforming agriculture," Journal of Productivity Analysis, Springer, vol. 33(3), pages 191-207, June.
    18. Zhong, Zhen & Chen, Shufen & Kong, Xiangzhi & Tracy, Megan, 2014. "Why improving agrifood quality is difficult in China: Evidence from dairy industry," China Economic Review, Elsevier, vol. 31(C), pages 74-83.

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