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Agricultural efficiency, technical change and productivity in China

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  • Xiaobing Wang
  • Supawat Rungsuriyawiboon

Abstract

Economic reform in China helped transform the structure and volume of agricultural production and resulted in significant changes in efficiency and productivity. This article measures agricultural technical efficiency (TE) and total factor productivity (TFP) in China by including all producers in different groups operating under their own technologies. A metafrontier function approach is applied using a panel data set on 28 provinces during 1991-2005. The provinces are categorised into advanced and low-technology provinces. Based on the metafrontier estimation, TFP growth is decomposed into TE change (TEC), technical change (TC) and scale efficiency change (SEC). Our major findings indicate that TC contributed most to Chinese agricultural TFP growth throughout the period of study. SEC and TEC exhibited negative effects on TFP growth for the advanced and low-technology provinces respectively. Most of the advanced-technology provinces exhibited higher TE than the low-technology provinces. The comparatively low TE scores in the low-technology provinces imply that the low-technology provinces were operating far from the metafrontier. The results also show that labour and fertiliser still make important contributions to output, and thus improving the quality of farmers and applying modern physical inputs is also crucial to TFP growth.

Suggested Citation

  • Xiaobing Wang & Supawat Rungsuriyawiboon, 2010. "Agricultural efficiency, technical change and productivity in China," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 207-227.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:2:p:207-227
    DOI: 10.1080/14631371003740704
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    References listed on IDEAS

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    1. Deininger, Klaus & Songqing Jin, 2002. "Land rental markets as an alternative to government reallocation? equity and efficiency considerations in the Chinese land tenure system," Policy Research Working Paper Series 2930, The World Bank.
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    1. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2011. "Technical efficiency and technology gaps in beef cattle production systems in Kenya: A stochastic metafrontier analysis," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108947, Agricultural Economics Society.
    2. Ziqi Yin & Jianzhai Wu, 2021. "Spatial Dependence Evaluation of Agricultural Technical Efficiency—Based on the Stochastic Frontier and Spatial Econometric Model," Sustainability, MDPI, vol. 13(5), pages 1-12, March.
    3. Kabata, Tshepelayi, 2015. "Water Pollution and Environmental Performance in US Agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 212626, International Association of Agricultural Economists.
    4. Becerra-Perez, Luis & Lopez-Reyes, Luis, 2017. "Technical efficiency of corn production in Sinaloa, Mexico," Conference papers 332904, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. He, Yongda & Lin, Boqiang, 2019. "Heterogeneity and asymmetric effects in energy resources allocation of the manufacturing sectors in China," Energy, Elsevier, vol. 170(C), pages 1019-1035.
    6. Nwigwe, Cecilia & Okoruwa, Victor & Obi-Egbedi, Oghenerueme, 2015. "Efficiency differentials and technological gaps in beef cattle production systems in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 229377, International Association of Agricultural Economists.
    7. Haishu Qiao & Ying Li & Julien Chevallier & Bangzhu Zhu, 2016. "Capital–energy substitution in China: regional differences and dynamic evolution," Post-Communist Economies, Taylor & Francis Journals, vol. 28(4), pages 421-435, October.

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