Determinants of Factor Misallocation in Agricultural Production and Implications for Agricultural Supplyâ€ side Reform in China
Hanning Li and
China & World Economy, 2018, vol. 26, issue 3, 22-42
Allocative inefficiency in agriculture is an issue puzzling researchers and policyâ€ makers in China. Based on household data from the China Family Panel Studies of 2012, the present paper quantifies the potential distortions in China's agricultural production and examines their underlying determinants across regions. The results reveal that there are different levels of distortions across regions. The Middle region is facing the greatest distortion. Increases in machinery input, the proportion of nonâ€ farm income and effective labor input will reduce distortions. Household saving, farmland rent and farmland size are significantly positively related to distortions. There is a complementary effect between labor and farmland in alleviating production inefficiency, but substitution effects exist between capital and farmland and also capital and labor. The increase in farmland size will aggravate the impact of capital on distortions. Given the constraint of super smallâ€ scale farmland, facilitating land transfer is a necessary precondition for improving allocative efficiency.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:chinae:v:26:y:2018:i:3:p:22-42
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1671-2234
Access Statistics for this article
China & World Economy is currently edited by Yongding Yu
More articles in China & World Economy from Institute of World Economics and Politics, Chinese Academy of Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().