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Farm Technology and Technical Efficiency: Evidence from Four Regions in China

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  • Chen, Zhuo
  • Huffman, Wallace
  • Rozelle, Scott

Abstract

In this paper we fit stochastic frontier production functions to data for Chinese farms grouped into each of four regions—North, Northeast, East, and Southwest—over 1995-1999. These frontier production functions are shown to have statistically different structures, and the marginal product information shows overuse of chemical inputs in the East and capital services in the North. Labor also has a low marginal product. Next, we use the data and the production parameters to create technical efficiency scores for each of the farms and then standardize them. Standardized technical efficiency is shown to have the same structure across regions and to be related to the age of the farmer, land fragmentation, and the village migration rate, controlling for year dummies and village or regional fixed effects.

Suggested Citation

  • Chen, Zhuo & Huffman, Wallace & Rozelle, Scott, 2006. "Farm Technology and Technical Efficiency: Evidence from Four Regions in China," ISU General Staff Papers 200605010700001242, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genstf:200605010700001242
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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