Total factor productivity growth in China's agricultural sector
Resource
China Economic Review 19 (4): 580-593
Journal
China Economic Review
Journal Volume
19
Journal Issue
4
Pages
580-593
Date Issued
2008
Author(s)
Abstract
A panel dataset of 29 provinces in China is used to analyze the productivity growth in China's agricultural sector over the period 1990-2003. We compute the output-oriented Malmquist productivity indexes and their decomposition using a sequential data envelopment analysis approach. The results indicate that the major source of productivity growth is technical progress and that the regional disparities in productivity growth worsen over time. The second stage regression results show that the main determinants of technical progress are agricultural tax cut, public investment in R&D and infrastructure, as well as mechanization while market reform, education and disaster mitigations are associated with efficiency improvement. The deterioration in scale efficiency, however, suggests a transition problem in relation to mechanization and highlights the importance of structural adjustment facilitations. © 2008 Elsevier Inc. All rights reserved.
Type
journal article
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