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Scale Effects, Technical Efficiency and Land Lease in China

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  • Wang, Xiaobing
  • Yu, Xiaohua

Abstract

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.

Suggested Citation

  • Wang, Xiaobing & Yu, Xiaohua, 2011. "Scale Effects, Technical Efficiency and Land Lease in China," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115736, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae11:115736
    DOI: 10.22004/ag.econ.115736
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    Keywords

    Farm Management; Land Economics/Use;

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