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The total factor productivity in China and India: new measures and approaches

Author

Listed:
  • Alejandro Nin Pratt
  • Bingxin Yu
  • Shenggen Fan

Abstract

Purpose - This paper aims to measure and compare agricultural total factor productivity (TFP) growth in China and India and relates TFP growth in each country to policy milestones and investment in agricultural research. Design/methodology/approach - TFP is measured using a non‐parametric Malmquist index which allows the decomposition of TFP growth into its components: efficiency and technical change. Findings - Comparing TFP growth in China and India it is found that efficiency improvement played a dominant role in promoting TFP growth in China, while technical change has also contributed positively. In India, the major source of productivity improvement came from technical change, as efficiency barely changed over the last three decades, which explains lower TFP growth than in China. Agricultural research has significantly contributed to improve agricultural productivity in both China and India. Even today, returns to agricultural R&D investments are very high, with benefit/cost ratios ranging from 20.7 to 9.6 in China and from 29.6 to 14.8 in India. Originality/value - The applied methodology and the comparison between TFP growth patterns contribute to a better understanding of the consequences that the different approaches to agricultural reform followed by China and India had on the performance of agriculture in both countries.

Suggested Citation

  • Alejandro Nin Pratt & Bingxin Yu & Shenggen Fan, 2009. "The total factor productivity in China and India: new measures and approaches," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(1), pages 9-22, January.
    • Handle: RePEc:eme:caerpp:v:1:y:2009:i:1:p:9-22
    DOI: 10.1108/17561370910915339
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    Citations

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    Cited by:

    1. Yu, Bingxin & Liao, Xiyuan & Shen, Hongfang, 2013. "Parametric decomposition of the malmquist index in an output-oriented distance function: Productivity in Chinese agriculture," IFPRI discussion papers 1244, International Food Policy Research Institute (IFPRI).
    2. Ito, Junichi & Li, Xinyi, 2023. "Interplay between China’s grain self-sufficiency policy shifts and interregional, intertemporal productivity differences," Food Policy, Elsevier, vol. 117(C).
    3. Wang, Sun Ling & Ball, V. Eldon & Fulginiti, Lilyan E. & Plastina, Alejandro S., 2012. "Benefits of Public R&D in U.S. Agriculture: Spill-Ins, Extension, and Roads," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126368, International Association of Agricultural Economists.
    4. Alejandro Nin-Pratt & Bingxin Yu & Shenggen Fan, 2010. "Comparisons of agricultural productivity growth in China and India," Journal of Productivity Analysis, Springer, vol. 33(3), pages 209-223, June.
    5. Shilei Pan & Chenhui Di & Abbas Ali Chandio & Ghulam Raza Sargani & Huaquan Zhang, 2022. "Investigating the Impact of Grain Subsidy Policy on Farmers’ Green Production Behavior: Recent Evidence from China," Agriculture, MDPI, vol. 12(8), pages 1-19, August.
    6. Tong, Haizhi & Fulginiti, Lilyan E. & Sesmero, Juan P., 2009. "Chinese Regional Agricultural Productivity: 1994-2005," 2009 Conference, August 16-22, 2009, Beijing, China 51784, International Association of Agricultural Economists.
    7. Raabe, Katharina, 2011. "The Dynamics of Service Delivery and Agricultural Development in India – A District Level Analysis –," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114783, European Association of Agricultural Economists.

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