IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i17p4620-d260826.html
   My bibliography  Save this article

Does FDI Promote or Inhibit the High-Quality Development of Agriculture in China? An Agricultural GTFP Perspective

Author

Listed:
  • Yafei Wang

    (School of Economics and Management, Chongqing Normal University, Chongqing 401331, China)

  • Li Xie

    (School of Economics and Management, Chongqing Normal University, Chongqing 401331, China)

  • Yi Zhang

    (School of Economics and Management, Chongqing Normal University, Chongqing 401331, China)

  • Chunyun Wang

    (School of Social Development and Public Policy, Beijing Normal University, Beijing 100875, China)

  • Ke Yu

    (School of Economics and Management, Chongqing Normal University, Chongqing 401331, China)

Abstract

This paper innovatively brings the undesirable output of agricultural carbon emission into the agricultural Total Factor Productivity (TFP) accounting framework as a measure of Green Total Factor Productivity (GTFP) and uses the Slack-based Measure and Malmquist-Luenberger (SBM-ML) index method to measure the agricultural GTFP of 24 provinces in China from 2004 to 2016. Further, the two-step system generalized moment method (GMM) is adopted to reveal the effect of agricultural (Foreign Direct Investment) FDI on the growth of agricultural GTFP and various subitems. We find that the average annual growth rate of agricultural GTFP is 3.1%, and its contribution rate to agricultural growth is 52%; the growth of agricultural GTFP shows that the progress of agricultural technology is accompanied by the deterioration of agricultural technical efficiency; the agricultural GTFP in the Eastern region, the Central region and the Western region increases in a stepped-up form, with an annual growth rate of 3.1%, 3.3% and 3.4%, respectively. Agricultural FDI has a significant promoting effect on agricultural GTFP and subitems, however, it has an inverted U-shaped feature in the long term.

Suggested Citation

  • Yafei Wang & Li Xie & Yi Zhang & Chunyun Wang & Ke Yu, 2019. "Does FDI Promote or Inhibit the High-Quality Development of Agriculture in China? An Agricultural GTFP Perspective," Sustainability, MDPI, vol. 11(17), pages 1-19, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:17:p:4620-:d:260826
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/17/4620/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/17/4620/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. Hsiao, Cheng & Mountain, Dean C & Illman, Kathleen Ho, 1995. "A Bayesian Integration of End-Use Metering and Conditional-Demand Analysis," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(3), pages 315-326, July.
    3. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    4. Botirjan Baltabaev, 2014. "Foreign Direct Investment and Total Factor Productivity Growth: New Macro-Evidence," The World Economy, Wiley Blackwell, vol. 37(2), pages 311-334, February.
    5. Fujimori, Azusa & Sato, Takahiro, 2015. "Productivity and technology diffusion in India: The spillover effects from foreign direct investment," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 630-651.
    6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    7. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1.
    8. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    9. Suyanto & Salim, Ruhul A. & Bloch, Harry, 2009. "Does Foreign Direct Investment Lead to Productivity Spillovers? Firm Level Evidence from Indonesia," World Development, Elsevier, vol. 37(12), pages 1861-1876, December.
    10. OWUTUAMOR, Zechariahs Benapugha & ARENE, Chukwuemeka John, 2018. "The Impact Of Foreign Direct Investment (Fdi) On Agricultural Growth In Nigeria (1979-2014)," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 21(1), March.
    11. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    12. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Chapters, in: Resource and Output Trends in the United States since 1870, pages 1-23, National Bureau of Economic Research, Inc.
    13. Hsiao, Cheng & Mountain, Dean C. & Chan, M. W. Luke & Tsui, Kai Y., 1989. "Modeling Ontario regional electricity system demand using a mixed fixed and random coefficients approach," Regional Science and Urban Economics, Elsevier, vol. 19(4), pages 565-587, December.
    14. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Mahendhiran Nair, 2017. "Trade openness, foreign direct investment, and finance-growth nexus in the Eurozone countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(3), pages 336-360, April.
    15. Fernandes, Ana M. & Paunov, Caroline, 2012. "Foreign direct investment in services and manufacturing productivity: Evidence for Chile," Journal of Development Economics, Elsevier, vol. 97(2), pages 305-321.
    16. Demir, Firat & Duan, Yi, 2018. "Bilateral FDI Flows, Productivity Growth, and Convergence: The North vs. The South," World Development, Elsevier, vol. 101(C), pages 235-249.
    17. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    18. Sotiris K. Papaioannou & Sophia P. Dimelis, 2019. "Does FDI increase productivity? The role of regulation in upstream industries," The World Economy, Wiley Blackwell, vol. 42(4), pages 1012-1031, April.
    19. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    20. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    21. Takii, Sadayuki, 2011. "Do FDI spillovers vary among home economies?: Evidence from Indonesian manufacturing," Journal of Asian Economics, Elsevier, vol. 22(2), pages 152-163, April.
    22. Ahmed M. Khalid & Antonio Marasco, 2019. "Do channels of financial integration matter for FDI’s impact on growth? Empirical evidence using a panel," Applied Economics, Taylor & Francis Journals, vol. 51(37), pages 4025-4045, August.
    23. Hamida, Lamia Ben, 2013. "Are there regional spillovers from FDI in the Swiss manufacturing industry?," International Business Review, Elsevier, vol. 22(4), pages 754-769.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chenyang Liu & Lihang Cui & Cuixia Li, 2022. "Impact of Environmental Regulation on the Green Total Factor Productivity of Dairy Farming: Evidence from China," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    2. Can Cheng & Xiuwen Yu & Heng Hu & Zitian Su & Shangfeng Zhang, 2022. "Measurement of China’s Green Total Factor Productivity Introducing Human Capital Composition," IJERPH, MDPI, vol. 19(20), pages 1-19, October.
    3. Wen Yao & Zhuo Sun, 2023. "The Impact of the Digital Economy on High-Quality Development of Agriculture: A China Case Study," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    4. Min Zhou & Hanxiaoxue Sun & Nan Ke, 2022. "The Spatial and Temporal Evolution of Coordination Degree Concerning China’s Cultivated Land Green Utilization Efficiency and High-Quality Agricultural Development," Land, MDPI, vol. 12(1), pages 1-21, December.
    5. Cong Li & Xihua Liu & Xue Bai & Muhammad Umar, 2020. "Financial Development and Environmental Regulations: The Two Pillars of Green Transformation in China," IJERPH, MDPI, vol. 17(24), pages 1-17, December.
    6. Shakeel Ahmad & Muhammad Tariq & Touseef Hussain & Qasir Abbas & Hamidullah Elham & Iqbal Haider & Xiangmei Li, 2020. "Does Chinese FDI, Climate Change, and CO 2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    7. Wang, Mei & Xu, Mi & Ma, Shaojun, 2021. "The effect of the spatial heterogeneity of human capital structure on regional green total factor productivity," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 427-441.
    8. Shuai Qin & Hong Chen, 2024. "Scientific and Technological Innovation Effects on High-Quality Agricultural Development: Spatial Boundaries and Mechanisms," Agriculture, MDPI, vol. 14(9), pages 1-19, September.
    9. Feng Ye & Zhongna Yang & Mark Yu & Susan Watson & Ashley Lovell, 2023. "Can Market-Oriented Reform of Agricultural Subsidies Promote the Growth of Agricultural Green Total Factor Productivity? Empirical Evidence from Maize in China," Agriculture, MDPI, vol. 13(2), pages 1-20, January.
    10. Hongxing Yao & Mohammed Ismail Alhussam & Omar Abu Risha & Bilal Ahmed Memon, 2020. "Analyzing the Relationship between Agricultural FDI and Food Security: Evidence from Belt and Road Countries," Sustainability, MDPI, vol. 12(7), pages 1-20, April.
    11. Youyuan Zheng & Zhou Zhou & Fan Zhou, 2024. "The Non-Linear Effect of Dual Environmental Regulation on Urban Green Total Factor Productivity: Evidence from 284 Cities in China," Sustainability, MDPI, vol. 16(12), pages 1-22, June.
    12. Chaoxun Ding & Ruidan Zhang, 2021. "The Measurement and Influencing Factors of Total Factor Productivity in the Chinese Rural Distribution Industry," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    13. Mingliang Zhao & Fangyi Liu & Wei Sun & Xin Tao, 2020. "The Relationship between Environmental Regulation and Green Total Factor Productivity in China: An Empirical Study Based on the Panel Data of 177 Cities," IJERPH, MDPI, vol. 17(15), pages 1-19, July.
    14. Yuelong Su & Yucheng Liu & Yong Zhou & Jiakang Liu, 2024. "Research on the Coupling and Coordination of Land Ecological Security and High-Quality Agricultural Development in the Han River Basin," Land, MDPI, vol. 13(10), pages 1-28, October.
    15. Yuanying Chi & Wenbing Zhou & Zhenyu Wang & Yu Hu & Xiao Han, 2021. "The Influence Paths of Agricultural Mechanization on Green Agricultural Development," Sustainability, MDPI, vol. 13(23), pages 1-16, November.
    16. Junyan Tian, 2023. "Does agricultural official development assistance facilitate foreign direct investment in agriculture: Evidence from 63 developing countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 702-718, September.
    17. Zhuohui Yu & Shiping Mao & Qingning Lin, 2022. "Has China’s Carbon Emissions Trading Pilot Policy Improved Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 12(9), pages 1-21, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massimo Del Gatto & Adriana Di Liberto & Carmelo Petraglia, 2011. "Measuring Productivity," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 952-1008, December.
    2. Koffi Délali Kpognon & Henri Atangana Ondoa & Mamadou Bah & Peter Asare-Nuamah, 2022. "Fostering Labour Productivity Growth for Productive and Decent Job Creation in Sub-Saharan African Countries: the Role of Institutional Quality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1962-1992, September.
    3. Damijan, Jože P. & Rojec, Matija & Majcen, Boris & Knell, Mark, 2013. "Impact of firm heterogeneity on direct and spillover effects of FDI: Micro-evidence from ten transition countries," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 895-922.
    4. Doytch, Nadia & Uctum, Merih, 2019. "Spillovers from foreign direct investment in services: Evidence at sub-sectoral level for the Asia-Pacific," Journal of Asian Economics, Elsevier, vol. 60(C), pages 33-44.
    5. Calogero Guccio & Marco Ferdinando Martorana & Luisa Monaco, 2016. "Evaluating the impact of the Bologna Process on the efficiency convergence of Italian universities: a non-parametric frontier approach," Journal of Productivity Analysis, Springer, vol. 45(3), pages 275-298, June.
    6. KPOGNON, Koffi & BAH, Mamadou, 2019. "Does institutional quality contribute to increasing labour productivity in sub-Saharan Africa? An empirical analysis," MPRA Paper 98674, University Library of Munich, Germany.
    7. Shima’a Hanafy & Marcus Marktanner, 2019. "Sectoral FDI, absorptive capacity and economic growth – empirical evidence from Egyptian governorates," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(1), pages 57-81, January.
    8. Noel Uri, 2003. "The Effect of Incentive Regulation in Telecommunications in the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(2), pages 169-191, May.
    9. Rosen Azad Chowdhury & Dilshad Jahan & Tapas Mishra & Mamata Parhi, 2023. "A Quality Dimension? A Re-appraisal of Financial Development and Economic Growth Nexus in a Quality-Quantity Setting," Working Papers 2023-02, Swansea University, School of Management.
    10. Makiela, Kamil & Ouattara, Bazoumana, 2018. "Foreign direct investment and economic growth: Exploring the transmission channels," Economic Modelling, Elsevier, vol. 72(C), pages 296-305.
    11. Thais Andreia Araujo Souza & Marina Silva Cunha, 2018. "Performance of Brazilian total factor productivity from 2004 to 2014: a sectoral and regional analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-18, December.
    12. Razzaq, Asif & An, Hui & Delpachitra, Sarath, 2021. "Does technology gap increase FDI spillovers on productivity growth? Evidence from Chinese outward FDI in Belt and Road host countries," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    13. Huynh, Linh & Hoang, Hien & Tran, Hung, 2020. "Does FDI enhance provincial productivity? A panel data analysis in Vietnam," MPRA Paper 117620, University Library of Munich, Germany, revised Aug 2021.
    14. Noel D. Uri, 2001. "Technical Efficiency, Allocative Efficiency, and the Implementation of a Price Cap Plan in Telecommunications in the United States," Journal of Applied Economics, Universidad del CEMA, vol. 4, pages 163-186, May.
    15. Jaunky, Vishal Chandr, 2013. "Divergence in technical efficiency of electric utilities: Evidence from the SAPP," Energy Policy, Elsevier, vol. 62(C), pages 419-430.
    16. Ceyhun Elgin & Selman Çakır, 2015. "Technological progress and scientific indicators: a panel data analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(3), pages 263-281, April.
    17. Aditi Bhattacharyya, 2012. "Adjustment of inputs and measurement of technical efficiency: A dynamic panel data analysis of the Egyptian manufacturing sectors," Empirical Economics, Springer, vol. 42(3), pages 863-880, June.
    18. Lukáš Čechura & Zdeňka Žáková Kroupová, 2021. "Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    19. Tommaso Agasisti & Cristian Barra & Roberto Zotti, 2019. "Research, knowledge transfer, and innovation: The effect of Italian universities’ efficiency on local economic development 2006−2012," Journal of Regional Science, Wiley Blackwell, vol. 59(5), pages 819-849, November.
    20. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:17:p:4620-:d:260826. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.