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Impacts of Irrigation, Mechanization and Subsidies on Wheat Efficiency in China: An Application of Two-Stage DEA

In: Agricultural Innovation in Asia

Author

Listed:
  • Dongpo Li

    (Hunan University of Technology and Business)

  • Teruaki Nanseki

    (Kyushu University)

Abstract

This chapter measured the production efficiency of wheat production in Hebei Province, China, through the adoption of DEA model. It revealed that among the 36 sampled counties, 11 counties were in the status of constant returns to scale, and 2 counties were displayed the state of decreasing returns to scale, while the rest 23 counties were demonstrating the trend of increasing returns to scale. Therefore, in most of the counties, enlarging the scale of wheat farming can improve the relative production efficiency. Meanwhile, within the 23 counties, there were still 14 counties had a technical efficiency scoring less than one, which means that with the given farm scale, production efficiency can be improved through reducing some of the inputs. The yields of main products can be increased by 1.28%, while the net profit can be increased by 27.20%. All the seven inputs can be saved by 19%, among which the machine rent can be decreased with the largest margin, following by irrigation fees, showing the relatively redundant and inefficient usage of the two kinds of input. Meanwhile, the input amount of fertilizer was shown the efficient usage with the smallest margin.

Suggested Citation

  • Dongpo Li & Teruaki Nanseki, 2023. "Impacts of Irrigation, Mechanization and Subsidies on Wheat Efficiency in China: An Application of Two-Stage DEA," Springer Books, in: Teruaki Nanseki (ed.), Agricultural Innovation in Asia, chapter 0, pages 97-108, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-9086-1_5
    DOI: 10.1007/978-981-19-9086-1_5
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