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This dissertation studies the production efficiency and productivity of agriculture in Shanxi province after Chinese economic reforms. The main question about the economic aspects of agriculture we want to address is the performance of Chinese agriculture since 1980. We use a newly constructed county-level input and output quantity data set to obtain technical efficiency and measure the Malmquist productivity index and its components. We first use the nonparametric method of Data Envelopment Analysis (DEA) to obtain Pareto-Koopmans measures of technical efficiency of individual counties in Shanxi province during year 1981-2010 in a multi-output, multi-input production framework. We disaggregate overall efficiency into two components representing output and input efficiencies and evaluate the contribution of individual outputs and inputs to the measured level of overall efficiency. We also examine the utilization of modern agricultural inputs compared to the traditional inputs. Next, We investigate the temporal and spatial nature of productivity growth of Chinese agriculture in Shanxi province. The results indicate that growth in the Malmquist productivity index over the 1983–2010 periods was 1.2% annually for the entire province. Decomposition of the Malmquist productivity index shows that technical change contributed to the growth in productivity by 0.8% per year, while efficiency change increased productivity by 0.4% per year. The results also show that the Malmquist index of productivity changes is fast-, moderate- and slow-growing in different groups. The trend of the growth of productivity is also explained in this dissertation. Finally, across county variation in the DEA measure of efficiency and its components is investigated. We identify a number of important factors and discuss their relevance as determinants of efficiency in agricultural production in Shanxi province. We also evaluate the impact of three important policy changes (named, China’s admission to WTO (2001), abolition of agricultural tax (2006), and subsidization of agricultural machinery (2007)) on agricultural efficiency at both national and county level. An analysis of the measured efficiency level can help to identify factors that enhance or hinder efficient resource utilization. This becomes helpful for public policy for improving efficiency.
This study by Shenggen Fan makes three important and original contributions. It is the first study to report regional patterns of productivity growth in Chinese agriculture. There have been dramatic differences in output and productivity growth among Chinese regions. The second contribution is to measure the separate effects of technical change and institutional reform on productivity growth. Much of the rapid growth in agricultural production and in productivity since the late 1970s has been a consequence of an important series of institutional reforms. The third contribution is the first test of the induced innovation hypothesis against experience in a centrally planned economy. Regional patterns of productivity growth are consistent with the hypothesis that the path of technical change has been responsive to regional differences in resource endowments.
China's agricultural growth in the past two decades has been called a miracle. An analysis of the sources of this miraculous growth is the focus of the present volume. In addition, this book also investigates the impact of economic reforms on agriculture, the potential of grain production in China, and regional disparities in agricultural production and growth performance. This book adds to the literature and contributes to the current debates on food security and rural development.
The study is devoted to the measurement of productivity and efficiency change in Chinese farming sector over the reform process in the 1980s and 1990s. Within an output distance function framework, an index of total factor productivity is decomposed into technical and allocative efficiency, technical change, and scale effects. We estimate a parametric output distance function using individual farm household data from the province Zhejiang over the period 1986-2000. Results indicate that during the more market-oriented reform period in the mid 1980s productivity and technical efficiency increased while allocative efficiency remain constant. However, productivity growth and technical efficiency slow in the mid 1990s when market orientation of the reforms was reduced and self-sufficiency as a major goal reappeared on the political agenda. -- productivity growth ; efficiency change ; China ; stochastic distance frontier
This book constructs a new theoretical framework for understanding contemporary Chinese agricultural production organizations from the perspective of promoting farmers' realization of 'substantial freedom' and 'feasible ability'. The new theoretical framework deepens and expands the theory of agricultural modernization and production organizations. The book discusses the 'multi-symbiosis' pattern of agricultural production organizations in contemporary China from macro and micro economics perspectives. Based on the peasant household economy, this multi-symbiosis organizational structure co-exists and interweaves with various forms of economic organizations. The book points out that this multi-symbiosis organizational structure is the result of free choice of the majority of farmers since the 'reform' and 'opening-up'; in turn, it also provides a broader organizational and institutional space for farmers' diversified choices. The book predicts that China's agricultural production organization networking will gradually move towards networking based on diversification and also form networked organization groups.
Annotation. Series on Developing China-Translated Research from China contains a collection of the most outstanding academic articles written by prestigious Chinese scholars of humanities and social sciences within the last 30 years. All the contributors are native Chinese scholars who have experienced China's dramatic changes by themselves. In the past, research done by Chinese scholars has not been adequately represented in English due to the language barrier. In this series, all the volumes are quality works translated from Chinese to English. This series will benefit international readers interested in China's reform process and the development of Chinese humanities and social sciences.