Productivity Growth and its Components in Chinese Agriculture after Reforms

Abstract

This study uses nonparametric Malmquist procedures to investigate the temporal and spatial nature of productivity growth and its components in Chinese agriculture over the period 1980-1995. The results of this study indicate that total factor productivity grew at 2.4% annually with technical change augmenting the growth by 3.8% while efficiency change reduced productivity growth by 1.3%. For all provinces, 288 out of a total of 442 cases experienced productivity growth while the rest showed productivity regression during this post-reform period. Coexistence of improvement in technical change and retardation in efficiency change indicates the lack of success in diffusing the existing agricultural technology. Continuing innovation and efficiency improvement through capital investment, modern input use, and greater competitive market pressures are important for augmenting productivity growth in Chinese agriculture.

Agricultural productivity, structural change, and economic growth in post-reform China

“…For example, Fan (1997) showed that agricultural productivity increased 3.9% per annum between 1985 and 1995. Wu et al (2001) found an increase of 3.6% between 1990 and 1995. Jin et al (2002) found that productivity of wheat increased by more than 20% between 1990.…”

Policy reform and productivity change in Chinese agriculture: A distance function approach

“…We use the level of aggregate output as weights in calculating the averages.15 We thank an anonymous referee for pointing out the importance of black markets for agricultural inputs and outputs.16 Wu et al (2001), using the Malmquist approach based on province level data, find the same rate of TFP growth for Chinese agriculture as a whole from 1990 to 1993.…”

Comparisons of agricultural productivity growth in China and India

“…For China: Brummer et al (2006), Carter et al (2003), Chen and Ding (2007), Fan and Zhang (2002), Jin et al (2002), Kalirajan et al (1996), Liu and Wang (2005), Mao and Koo (2002), Mead (2003), Wang and Kalirajan (2002), Wen (1993), Wu et al (2001) and Zhang and Carter (1997). …”