Sources of Productivity Disparities in Regional Grain Production in China

Yang Hong

No 1996-09, Chinese Economies Research Centre (CERC) Working Papers from University of Adelaide, Chinese Economies Research Centre

Abstract: The study utilises survey data on 1000 households in rural China to investigate sources of disparities in factor productivities for rice, wheat and maize in different provinces. The effects of natural endowments are emphasised. It is found that for respective crops, the level of factor productivities is generally higher in their major producing areas than that in the non-major producing areas due partly to more suitable natural conditions and more specialised production. Meanwhile, farmers' production efforts, in particular land input also tend to be in favour of major crops. This biased behaviour rises factor productivities for major crops and lowers them for non-major crops in different regions. The finding of this study underlines the efficiency of specialisation of crop production in areas where natural conditions are favourable and where farmers are more experienced in producing them.

Date: 1996
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