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Scale Effects, Technical Efficiency and Land Lease in China

  • Wang, Xiaobing
  • Yu, Xiaohua

Using a panel dataset from Zhejiang province in China over the period 1995-2002, we propose a two-step estimation procedure to investigate the links between land lease activity and production efficiency. We find that the output elasticity with respect to land, the scale effect and the technical efficiency are higher for farmers involved in land-lease activities. In addition, technical efficiency and land-lease activity are endogenous, and farmers with higher technical efficiency are more likely to lease more land and adopt advanced technologies to achieve higher profits, which in turn alters the technical efficiency.

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Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 115736.

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Date of creation: 02 Sep 2011
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Handle: RePEc:ags:eaae11:115736
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