IDEAS home Printed from https://ideas.repec.org/p/ags/eaae02/24779.html
   My bibliography  Save this paper

Policy Reform and Productivity Change in Chinese Agriculture: A Distance Function Approach

Author

Listed:
  • Brümmer, Bernhard
  • Glauben, Thomas
  • Lu, Wencong C.

Abstract

Agricultural policy reform has been an important source of change in the Chinese agricultural sector. The reforms led to productivity growth and helped China in pursuing its self-sufficiency goal especially in the grain sector. To analyse whether observable productivity growth stems from technologically induced components, or from the market induced parts, a multi-input-multi-output model is derived using an econometric distance function framework. A decomposition allows to distinguish allocative effects, scale effects, technological change, and technical efficiency change. Data on farms in Zhejiang from 1986 to 1999 are used to analyse the impact of policy reform.

Suggested Citation

  • Brümmer, Bernhard & Glauben, Thomas & Lu, Wencong C., 2002. "Policy Reform and Productivity Change in Chinese Agriculture: A Distance Function Approach," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24779, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae02:24779
    DOI: 10.22004/ag.econ.24779
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/24779/files/cp02br80.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.24779?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Carter, Colin A. & Estrin, Andrew J., 2001. "Market Reforms Versus Structural Reforms in Rural China," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 527-541, September.
    2. O'Donnell, Christopher J. & Coelli, Timothy J., 2005. "A Bayesian approach to imposing curvature on distance functions," Journal of Econometrics, Elsevier, vol. 126(2), pages 493-523, June.
    3. Li, Guo & Rozelle, Scott & Brandt, Loren, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics, Blackwell, vol. 19(1-2), pages 63-71, September.
    4. Shunxiang Wu & David Walker & Stephen Devadoss & Yao‐chi Lu, 2001. "Productivity Growth and its Components in Chinese Agriculture after Reforms," Review of Development Economics, Wiley Blackwell, vol. 5(3), pages 375-391, October.
    5. Giannis Karagiannis & Peter Midmore & Vangelis Tzouvelekas, 2004. "Parametric Decomposition of Output Growth Using A Stochastic Input Distance Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1044-1057.
    6. Huang,Yiping, 1998. "Agricultural Reform in China," Cambridge Books, Cambridge University Press, number 9780521620550, September.
    7. Li Ding, 2000. "Issues and Challenges in Agricultural Reform," Palgrave Macmillan Books, in: Yongzheng Yang & Weiming Tian (ed.), China’s Agriculture at the Crossroads, chapter 2, pages 21-33, Palgrave Macmillan.
    8. Schmidt, Peter, 1988. "Estimation of a fixed-effect Cobb-Douglas system using panel data," Journal of Econometrics, Elsevier, vol. 37(3), pages 361-380, March.
    9. Bernhard Brümmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
    10. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    11. Jirong Wang & Eric J. Wailes & Gail L. Cramer, 1996. "A Shadow-Price Frontier Measurement of Profit Efficiency in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 146-156.
    12. D T Nguyen & Harry X Wu, 1993. "The Impacts of Economic Reforms on Chinese Agricultural Performance," Chinese Economies Research Centre (CERC) Working Papers 1993-09, University of Adelaide, Chinese Economies Research Centre.
    13. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
    14. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
    15. H. Son Nghiem & T. Coelli, 2002. "The Effect of Incentive Reforms Upon Productivity: Evidence from the Vietnamese Rice Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 74-93.
    16. Shenggen Fan, 2000. "Technological change, technical and allocative efficiency in Chinese agriculture: the case of rice production in Jiangsu," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(1), pages 1-12.
    17. Baltagi, Badi H & Griffin, James M, 1988. "A General Index of Technical Change," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 20-41, February.
    18. repec:bla:rdevec:v:5:y:2001:i:3:p:375-91 is not listed on IDEAS
    19. Luis Orea, 2002. "Parametric Decomposition of a Generalized Malmquist Productivity Index," Journal of Productivity Analysis, Springer, vol. 18(1), pages 5-22, July.
    20. K.P. Kalirajan & M.B. Obwona & S. Zhao, 1996. "A Decomposition of Total Factor Productivity Growth: The Case of Chinese Agricultural Growth before and after Reforms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 331-338.
    21. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    22. Wen, Guanzhong James, 1993. "Total Factor Productivity Change in China's Farming Sector: 1952-1989," Economic Development and Cultural Change, University of Chicago Press, vol. 42(1), pages 1-41, October.
    23. Robin Sickles & David Good & Lullit Getachew, 2002. "Specification of Distance Functions Using Semi- and Nonparametric Methods with an Application to the Dynamic Performance of Eastern and Western European Air Carriers," Journal of Productivity Analysis, Springer, vol. 17(1), pages 133-155, January.
    24. Mundlak, Yair, 1996. "Production Function Estimation: Reviving the Primal," Econometrica, Econometric Society, vol. 64(2), pages 431-438, March.
    Full references (including those not matched with items on IDEAS)

    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. Carter, Colin A. & Estrin, Andrew J., 2001. "Market Reforms Versus Structural Reforms in Rural China," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 527-541, September.
    2. Vu, Linh Hoang, 2012. "Vietnam’s Agricultural Productivity: A Malmquist Index Approach," MPRA Paper 94800, University Library of Munich, Germany.
    3. Gong, Binlei, 2020. "Agricultural productivity convergence in China," China Economic Review, Elsevier, vol. 60(C).
    4. Chen, Po-Chi & Yu, Ming-Miin & Chang, Ching-Cheng & Hsu, Shih-Hsun, 2008. "Total factor productivity growth in China's agricultural sector," China Economic Review, Elsevier, vol. 19(4), pages 580-593, December.
    5. Gong, Binlei, 2018. "Agricultural reforms and production in China: Changes in provincial production function and productivity in 1978–2015," Journal of Development Economics, Elsevier, vol. 132(C), pages 18-31.
    6. Ogundari, K. & Brümmer, Bernhard, 2011. "Estimating Technical Efficiency, Input substitution and complementary effects using Output Distance Function: A study of Cassava production in Nigeria," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    7. Xin, Xiangfei & Qin, Fu, 2009. "Decomposition of Agricultural Labor Productivity Growth and its Regional Disparity in China," 2009 Conference, August 16-22, 2009, Beijing, China 51047, International Association of Agricultural Economists.
    8. Meng, Erika C.H. & Smale, Melinda & Rozelle, Scott & Ruifa, Hu & Huang, Jikun, 1999. "The Cost Of Wheat Diversity In China," 1999 Annual meeting, August 8-11, Nashville, TN 21580, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Feng, Guohua & Serletis, Apostolos, 2010. "Efficiency, technical change, and returns to scale in large US banks: Panel data evidence from an output distance function satisfying theoretical regularity," Journal of Banking & Finance, Elsevier, vol. 34(1), pages 127-138, January.
    10. Mike Tsionas & Marwan Izzeldin & Arne Henningsen & Evaggelos Paravalos, 2022. "Addressing endogeneity when estimating stochastic ray production frontiers: a Bayesian approach," Empirical Economics, Springer, vol. 62(3), pages 1345-1363, March.
    11. Y. Wu, 1997. "Productivity & Efficiency: Evidence from the Chinese regional economies," Economics Discussion / Working Papers 97-18, The University of Western Australia, Department of Economics.
    12. Wu, Yanrui, 2000. "Is China's economic growth sustainable? A productivity analysis," China Economic Review, Elsevier, vol. 11(3), pages 278-296.
    13. Cullmann, Astrid & Zloczysti, Petra, 2013. "Towards an Efficient Use of R&D ? Accounting for Heterogeneity in the OECD," CEPR Discussion Papers 9345, C.E.P.R. Discussion Papers.
    14. Kellermann, Magnus A., 2015. "Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-25, April.
    15. Areal, Francisco J. & Tiffin, Richard & Balcombe, Kelvin G., 2012. "Provision of environmental output within a multi-output distance function approach," Ecological Economics, Elsevier, vol. 78(C), pages 47-54.
    16. Shengmin Sun & Qiang Chen, 2014. "Measuring the Effects of Decollectivization on China's Agricultural Growth: A Panel GMM Approach, 1970-1987," SDU Working Papers 2014-05, School of Economics, Shandong University.
    17. Fabian Frick & Johannes Sauer, 2021. "Technological Change in Dairy Farming with Increased Price Volatility," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 564-588, June.
    18. Rungsuriyawiboon, Supawat & Xiaobing, Wang, 2007. "Recent Evidence On Agricultural Efficiency And Productivity In China: A Metafrontier Approach," IAMO Discussion Papers 90863, Institute of Agricultural Development in Transition Economies (IAMO).
    19. Brümmer Bernhard & Glauben Thomas, 2004. "Zur Messung und Erklärung von Produktivitätsentwicklungen: Eine Analyse auf Basis eines stochastischen Distanzfrontieransatzes / Measuring and Explaining Productivity Growth: A Distance Function Appro," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 224(4), pages 420-444, August.
    20. Mensah, Amos & Brümmer, Bernhard, 2016. "A multi-output production efficiency analysis of commercial banana farms in the Volta region of Ghana: A stochastic distance function approach," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(4), pages 1-12, December.

    More about this item

    Keywords

    Productivity Analysis;

    Statistics

    Access and download statistics

    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:ags:eaae02:24779. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.