Impacts of Irrigation, Mechanization and Subsidies on Wheat Efficiency in China: An Application of Two-Stage DEA

Dongpo Li () and Teruaki Nanseki ()
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Dongpo Li: Hunan University of Technology and Business
Teruaki Nanseki: Kyushu University

Chapter Chapter 5 in Agricultural Innovation in Asia, 2023, pp 97-108 from Springer

Abstract: Abstract This chapter measured the production efficiency of wheat production in Hebei Province, China, through the adoption of DEA model. It revealed that among the 36 sampled counties, 11 counties were in the status of constant returns to scale, and 2 counties were displayed the state of decreasing returns to scale, while the rest 23 counties were demonstrating the trend of increasing returns to scale. Therefore, in most of the counties, enlarging the scale of wheat farming can improve the relative production efficiency. Meanwhile, within the 23 counties, there were still 14 counties had a technical efficiency scoring less than one, which means that with the given farm scale, production efficiency can be improved through reducing some of the inputs. The yields of main products can be increased by 1.28%, while the net profit can be increased by 27.20%. All the seven inputs can be saved by 19%, among which the machine rent can be decreased with the largest margin, following by irrigation fees, showing the relatively redundant and inefficient usage of the two kinds of input. Meanwhile, the input amount of fertilizer was shown the efficient usage with the smallest margin.

Date: 2023
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DOI: 10.1007/978-981-19-9086-1_5

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