Total factor productivity change in China's grain production sector: 1980–2018

Zhihao Zheng, Shen Cheng and Shida R. Henneberry

Australian Journal of Agricultural and Resource Economics, 2023, vol. 67, issue 1, 38-55

Abstract: This study analyses changes in total factor productivity (TFP) of grains as an aggregate commodity and major grain crops including rice, wheat, and corn, using pooled provincial and time‐series data from 1980 to 2018 for China. Results show that the growth of TFP in the grain sector was driven by technical improvements. Moreover, the grain output and wheat production benefited more from TFP growth, whereas the growth in the usage of inputs drove the growth in rice and corn production. Findings also indicate that the laissez‐faire market‐oriented policy led to a dramatic fall in output while the intervention‐led policy resulted in a substantial rise in output, but neither of them fostered the growth of productivity. Conversely, the incentive‐led policy in a market‐oriented environment that raised the comparative profitability in grain production promoted the growth in both output and productivity in the grain sector. As the comparative advantage shifts away from agriculture in China, an appropriate support is thus necessary to stimulate farmers' incentive in growing grain crops.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/1467-8489.12495

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ajarec:v:67:y:2023:i:1:p:38-55

Ordering information: This journal article can be ordered from
http://ordering.onli ... 1111/(ISSN)1467-8489

Access Statistics for this article

Australian Journal of Agricultural and Resource Economics is currently edited by John Rolfe, Lin Crase and John Tisdell

More articles in Australian Journal of Agricultural and Resource Economics from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().