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Technical Efficiency Of Chinese Grain Production: A Stochastic Production Frontier Approach

  • Chen, Adam Zhuo
  • Huffman, Wallace E.
  • Rozelle, Scott

This article examines technical efficiency of the Chinese grain sector using the framework of stochastic production frontier. The results reveal that: the marginal products of labor and fertilizer are much smaller than that of land; human capital and farm-level specialization have positive effect on efficiency, land fragmentation is detrimental to efficiency, and elder farmers are as efficient as younger farmers. We also examine the effects of size, mechanization and geographic location. Simulation results show that significant output gains can be obtained by eliminating land fragmentation, improving rural education and promoting specialization and mechanization.

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File URL: http://purl.umn.edu/22116
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22116.

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Date of creation: 2003
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Handle: RePEc:ags:aaea03:22116
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  18. Weiming Tian & Guang Wan, 2000. "Technical Efficiency and Its Determinants in China's Grain Production," Journal of Productivity Analysis, Springer, vol. 13(2), pages 159-174, March.
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  20. Abdulai, Awudu & Huffman, Wallace, 2000. "Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana," Staff General Research Papers 5100, Iowa State University, Department of Economics.
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  22. DEPRINS, Dominique & SIMAR, Léopold, . "Estimating technical inefficiencies with correction for environmental conditions with an application to railway companies," CORE Discussion Papers RP -834, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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