Technical Efficiency Under Producer’S Individual Technology: A Metafrontier Analysis
Differences in resource endowment between regions influence the technologies applied in agriculture and cause location-specific effects on production and technical change. Access to technologies may also differ within regions because producers may apply different technologies in production due to different characteristics. Within this setting, we extend the existing literature by considering that producers face region- and farm-specific production frontiers. The treatment of essentially heterogeneous technical efficiency (TE) is performed following a two-step procedure. First, a random coefficient specification of the production technology is used to measure the interactions of technology adoption with time, input factors and output. Second, linear programming techniques are employed to envelop the optimal level of technology. This procedure is applied to household-level data from eastern, central and western provinces in China. Our results provide evidence that technical efficiency is significantly affected by farm heterogeneity. This factor influences TE directly as a producer-specific input, and indirectly through interaction with observable inputs such as land, labor, capital and intermediate inputs. Our results also prove the assumption that farming technology exhibits region-specific characteristics. Furthermore, there is a disparity of TE across provinces that narrows over the study period and is driven by the shifts of production to the metafrontier.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
- Jirong Wang & Eric J. Wailes & Gail L. Cramer, 1996. "A Shadow-Price Frontier Measurement of Profit Efficiency in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 146-156.
- Pender, John L. & Place, Frank & Ehui, Simeon K., 1999. "Strategies for sustainable agricultural development in the East African highlands:," EPTD discussion papers 41, International Food Policy Research Institute (IFPRI).
- Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
- Bill Greene with Antonio Alvarez (Univ. of Oviedo) & Carlos Arias (Univ. of Leon), 2004.
"Accounting For Unobservables In Production Models: Management And Inefficiency,"
Econometric Society 2004 Australasian Meetings
341, Econometric Society.
- Álvarez, Antonio & Arias, Carlos & Greene, William, 2005. "Accounting for Unobservables in Production Models: Management and Inefficiency," Efficiency Series Papers 2005/07, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
- Antonio Álvarez & Carlos Arias & William Greene, 2004. "Accounting for unobservables in production models:management and inefficiency," Economic Working Papers at Centro de Estudios Andaluces E2004/72, Centro de Estudios Andaluces.
- 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.
- Jikun Huang & Xiaobing Wang & Huayong Zhi & Zhurong Huang & Scott Rozelle, 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), pages 53-71, 01.
- K.P. Kalirajan & M.B. Obwona & S. Zhao, 1996. "A Decomposition of Total Factor Productivity Growth: The Case of Chinese Agricultural Growth before and after Reforms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 331-338.
- Efthymios G. Tsionas, 2002.
"Stochastic frontier models with random coefficients,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 17(2), pages 127-147.
- Tsionas, E.G., 2001. "Stochastic Frontier Models with Random Coefficients," Athens University of Economics and Business 130, Athens University of Economics and Business, Department of International and European Economic Studies.
- Tsionas, E.G., 2001. "Stochastic Frontier Models with Random Coefficients," DEOS Working Papers 130, Athens University of Economics and Business.
- Huang, Yiping & Kalirajan, Kaliappa P., 1997.
"Potential of China's grain production: evidence from the household data,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 17(2-3), December.
- Huang, Yiping & Kalirajan, K. P., 1997. "Potential of China's grain production: evidence from the household data," Agricultural Economics, Blackwell, vol. 17(2-3), pages 191-199, December.
- HU, Ruifa & YANG, Zhijian & KELLY, Peter & HUANG, Jikun, 2009. "Agricultural extension system reform and agent time allocation in China," China Economic Review, Elsevier, vol. 20(2), pages 303-315, June.
- 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.
- Bravo-Ureta, Boris & Solís, Daniel & Moreira, Victor & Maripani, José & Thiam, Abdourahmane & Rivas, Teodoro, 2005.
"Technical Efficiency in Farming: A Meta-regression analysis,"
Efficiency Series Papers
2005/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
- Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
- Kung, James Kai-sing, 2002. "Off-Farm Labor Markets and the Emergence of Land Rental Markets in Rural China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 395-414, June.
- Chen, Zhuo & Song, Shunfeng, 2008.
"Efficiency and technology gap in China's agriculture: A regional meta-frontier analysis,"
China Economic Review,
Elsevier, vol. 19(2), pages 287-296, June.
- Zhuo Chen & Shunfeng Song, 2006. "Efficiency and Technology Gap in China's Agriculture: A Regional META-Frontier Analysis," Working Papers 06-005, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
- W, Y, 1995. "Productivity Growth, Technological Progress, and Technical Efficiency Change in China: A Three-Sector Analysis1," Journal of Comparative Economics, Elsevier, vol. 21(2), pages 207-229, October.
- Bryce Stewart & Terrence Veeman & James Unterschultz, 2009. "Crops and Livestock Productivity Growth in the Prairies: The Impacts of Technical Change and Scale," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 379-394, 09.
- Bernhard Brümmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
- Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
- George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
- Liu, Zinan & Zhuang, Juzhong, 2000. "Determinants of Technical Efficiency in Post-Collective Chinese Agriculture: Evidence from Farm-Level Data," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 545-564, September.
- Mao, Weining & Koo, Won W., 1997. "Productivity growth, technological progress, and efficiency change in chinese agriculture after rural economic reforms: A DEA approach," China Economic Review, Elsevier, vol. 8(2), pages 157-174.
- Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:126755. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.