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The impact of policy reform on productivity and efficiency in Chinese agriculture: A distance function approach

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  • Brümmer, Bernhard
  • Glauben, Thomas
  • Lu, Wencong

Abstract

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.

Suggested Citation

  • Brümmer, Bernhard & Glauben, Thomas & Lu, Wencong, 2004. "The impact of policy reform on productivity and efficiency in Chinese agriculture: A distance function approach," FE Working Papers 0402, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    • Handle: RePEc:zbw:caufew:0402
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    References listed on IDEAS

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    1. 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.
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