Capital Formation and Agricultural Growth in China
Hengyun Ma,
Jikun Huang and
Les Oxley
Asian Economic Papers, 2013, vol. 12, issue 1, 166-190
Abstract:
The paper considers the role and determinants of capital formation in Chinese agriculture and, in particular, the effects of capital formation on agricultural total factor productivity (TFP) growth. The results show that capital investment in agriculture by both government and farmers has risen significantly in the past two and a half decades, particularly in recent years. As China remains in the early stages of agricultural policy transition, its political economy would suggest that there will likely be more public investment in, and more subsidies to, agriculture in the coming years. Increased public investment in agriculture appears to have also induced increased farmers' capital formation in agriculture. Credit policy, the overall growth of farmer's income, rural wages, and comparative advantage of commodities are important factors that may facilitate farmers' investment in agriculture. The results also show that the successful growth of China's agriculture has been associated with its high TFP growth. Both public and private agricultural capital formations have played an important role in raising China's agricultural productivity. The TFP decomposition analyses show that technological change is a primary driver of the TFP growth in China's agriculture.
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/ASEP_a_00200 link to full text PDF (application/pdf)
Access to full text is restricted to subscribers.
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:tpr:asiaec:v:12:y:2013:i:1:p:166-190
Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=1535-3516
Access Statistics for this article
Asian Economic Papers is currently edited by Wing Thye Woo, Sungbae An, Fukunari Kimura and Ming Lu
More articles in Asian Economic Papers from MIT Press
Bibliographic data for series maintained by The MIT Press ().