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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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File URL: http://purl.umn.edu/115736
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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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  1. Xu, Xiaosong & Jeffrey, Scott R., 1998. "Efficiency and technical progress in traditional and modern agriculture: evidence from rice production in China," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(2), March.
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  10. Yanjie Zhang & Xiaobing Wang & Thomas Glauben & Bernhard Brümmer, 2011. "The impact of land reallocation on technical efficiency: evidence from China," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 495-507, 07.
  11. Huang, Jikun & Wang, Xiaobing & Zhi, Huayong & Huang, Zhurong & Rozelle, Scott, 2011. "Subsidies and distortions in China’s agriculture: evidence from producer-level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), March.
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  16. World Bank, 2003. "Reaching the Rural Poor : A Renewed Strategy for Rural Development," World Bank Publications, The World Bank, number 14084.
  17. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
  18. Vranken, Liesbet & Swinnen, Johan, 2006. "Land rental markets in transition: Theory and evidence from Hungary," World Development, Elsevier, vol. 34(3), pages 481-500, March.
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  20. Kung, James Kai-sing, 2000. "Common Property Rights and Land Reallocations in Rural China: Evidence from a Village Survey," World Development, Elsevier, vol. 28(4), pages 701-719, April.
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