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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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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
Date of revision:
Handle: RePEc:ags:aaea03:22116
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  1. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211.
  2. Yang, Dennis Tao, 1997. "Education and Off-Farm Work," Economic Development and Cultural Change, University of Chicago Press, vol. 45(3), pages 613-32, April.
  3. Alan de Brauw & Jikun Huang & Scott Rozelle, . "Sequencing and the Success of Gradualism: Empirical Evidence from China's Agricultural Reform," Center for Development Economics 173, Department of Economics, Williams College.
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  7. Christopher Findlay, 1997. "Grain Sector Reform in China," Chinese Economies Research Centre (CERC) Working Papers 1997-01, University of Adelaide, Chinese Economies Research Centre.
  8. Dwayne Benjamin & Loren Brandt & John Giles, 2003. "The Evolution of Income Inequality in Rural China," Working Papers benjamin-04-01, University of Toronto, Department of Economics.
  9. Li, Guo & Rozelle, Scott & Brandt, Loren, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
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  11. Herriges, Joseph A. & Kling, Catherine L., 1996. "Testing the consistency of nested logit models with utility maximization," Economics Letters, Elsevier, vol. 50(1), pages 33-39, January.
  12. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
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  24. Abdulai, Awudu & Huffman, Wallace, 2000. "Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 503-20, April.
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