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Changing Structure and Sustainable Development for China’s Hog Sector

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  • Xiaoheng Zhang

    (College of Economic and Management, Nanjing Agricultural University, Nanjing 210095, China
    Laboratory Informatique, Biologie Intégrative et Systèmes Complexes, University of Évry-Val d’Essonne, Évry 91020, France)

  • Feng Chu

    (Laboratory Informatique, Biologie Intégrative et Systèmes Complexes, University of Évry-Val d’Essonne, Évry 91020, France
    Management Engineering Research Center, Xihua University, Chengdu 610039, China)

  • Xiaohua Yu

    (Courant Research Centre Poverty, Inequity and Growth, University of Gottingen, Gottingen 37073, Germany)

  • Yingheng Zhou

    (College of Economic and Management, Nanjing Agricultural University, Nanjing 210095, China)

  • Xu Tian

    (College of Economic and Management, Nanjing Agricultural University, Nanjing 210095, China)

  • Xianhui Geng

    (College of Economic and Management, Nanjing Agricultural University, Nanjing 210095, China)

  • Jinyang Yang

    (College of Economic and Management, Nanjing Agricultural University, Nanjing 210095, China
    Department of Health Policy and Management, Yale University, New Haven, CT 06520, USA)

Abstract

Supply shortages and competitive disadvantages are the main problems faced by China’s hog sector. The non-essential import of pork products, triggered by competitive disadvantages, poses great challenges to hog farms. Structural changes are an important policy concern in China and elsewhere. Previous literature has ignored whether the ongoing structural changes from backyard to large farms can contribute to sustainable development. This study adopts the micro-level data of hog farms collected from Jiangsu Province, and uses a two-step metafrontier model and a primal system approach. The empirical results reveal that the ongoing structural changes are capable of boosting the growth in output in China’s hog sector, since the stronger increase in comparable technical efficiency compensates for the inappropriate technology. Furthermore, the ongoing structural changes are also beneficial in the reduction of production costs and in improving competitiveness in China’s hog sector. The decline in technical and allocative inefficiency costs, particularly for technical inefficiency costs, contributes to the cost advantage with the increasing farm size.

Suggested Citation

  • Xiaoheng Zhang & Feng Chu & Xiaohua Yu & Yingheng Zhou & Xu Tian & Xianhui Geng & Jinyang Yang, 2017. "Changing Structure and Sustainable Development for China’s Hog Sector," Sustainability, MDPI, vol. 9(1), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:1:p:69-:d:87041
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    References listed on IDEAS

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    Cited by:

    1. Youzhu Li & Rui He & Jinsi Liu & Chongguang Li & Jason Xiong, 2021. "Quantitative Evaluation of China’s Pork Industry Policy: A PMC Index Model Approach," Agriculture, MDPI, vol. 11(2), pages 1-21, January.
    2. Chen, Yuquan & Yu, Xiaohua, 2018. "Does the centralized slaughtering policy create market power for pork industry in China?," China Economic Review, Elsevier, vol. 50(C), pages 59-71.
    3. Lajos Baráth & Imre Fertő & Jakub Staniszewski, 2021. "Technological Heterogeneity in Pig Farming: A Metafrontier Approach—Perspectives from Hungary and Poland," Agriculture, MDPI, vol. 11(10), pages 1-13, October.
    4. Richard Adjei Dwumfour & Eric Fosu Oteng-Abayie & Emmanuel Kwasi Mensah, 2022. "Bank efficiency and the bank lending channel: new evidence," Empirical Economics, Springer, vol. 63(3), pages 1489-1542, September.
    5. Kuhn, Lena & Balezentis, Tomas & Hou, Lingling & Wang, Dan, 2020. "Technical and environmental efficiency of livestock farms in China: A slacks-based DEA approach," China Economic Review, Elsevier, vol. 62(C).
    6. Ng’ombe, John N., 2017. "Technical efficiency of smallholder maize production in Zambia: a stochastic meta-frontier approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 56(3), December.

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