Share:


Technical change directions of China’s grain production: application of the bias-corrected Malmquist indices

    Tianxiang Li Affiliation
    ; Tomas Baležentis Affiliation
    ; Lijuan Cao Affiliation
    ; Jing Zhu Affiliation
    ; Dalia Štreimikienė Affiliation
    ; Rasa Melnikienė Affiliation

Abstract

This paper aims at measuring productivity and efficiency of China’s three most important grain crops–rice, wheat and maize–as well as identifying the main directions of technical change prevailing in their production. The bias-corrected Malmquist production indices are employed to measure the technical changes (TCs) in terms of input-saving or input-using in China’s grain production, by using provincial aggregate data obtained from the National Farm Production Costs and Returns Survey. The research covers the period of 2003–2013. Application of the bias-corrected Malmquist index showed a labor-saving technical change against all the remaining inputs for the three crops under analysis. The highest frequencies of fertilizer- and machinery-using, labor-saving technical changes were observed for wheat farming. Therefore, a reduction in labor intensity should be the most promising for wheat if compared with rice and maize.

Keyword : grain production, technical change, technical bias, bias-corrected Malmquist index, China

How to Cite
Li, T., Baležentis, T., Cao, L., Zhu, J., Štreimikienė, D., & Melnikienė, R. (2018). Technical change directions of China’s grain production: application of the bias-corrected Malmquist indices. Technological and Economic Development of Economy, 24(5), 2065-2082. https://doi.org/10.3846/20294913.2017.1352050
Published in Issue
Oct 16, 2018
Abstract Views
1236
PDF Downloads
699
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Anderson, K.; Strutt, A. 2012. Agriculture and food security in Asia by 2030, Farm Policy Journal 9(4): 21–33. https://doi.org/10.2139/ssrn.2102459

Anderson, K.; Strutt, A. 2014. Food security policy options for China: lessons from other countries, Food Policy 49(1): 50–58. https://doi.org/10.1016/j.foodpol.2014.06.008

Assaf, A. G.; Barros, C. 2011. Performance analysis of the gulf hotel industry: a Malmquist index with bias correction, International Journal of Hospitality Management 30(4): 819–826. https://doi.org/10.1016/j.ijhm.2011.01.002

Baležentis, T. 2014. Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices, Empirica 41(4): 731–746. https://doi.org/10.1007/s10663-013-9234-y

Barros, C. P.; Weber, W. L. 2009. Productivity growth and biased technological change in UK airports, Transportation Research Part E: Logistics and Transportation Review 45(4): 642–653. https://doi.org/10.1016/j.tre.2009.01.004

Barros, C. P.; Felício, J. A.; Fernandes, R. L. 2012. Productivity analysis of Brazilian seaports, Maritime Policy & Management 39(5): 503–523. https://doi.org/10.1080/03088839.2012.705033

Binswanger, H. P. 1974. The measurement of technical change biases with many factors of production, American Economic Review 64: 964–976.

Brümmer, B.; Glauben, T.; Lu, W. 2006. Policy reform and productivity change in Chinese agriculture: a distance function approach, Journal of Development Economics 81(1): 61–79. https://doi.org/10.1016/j.jdeveco.2005.04.009

Cater, C. A.; Chen, J.; Chu, B. J. 2003. Agricultural productivity growth in China: farm level versus aggregate measurement, China Economic Review 14(1): 53–71. https://doi.org/10.1016/S1043-951X(02)00086-X

Caves, D. W.; Christensen, L. R.; Diewert, W. E. 1982. The economic theory of index numbers and the measurement of input, output, and productivity, Econometrica 50: 1393–1414. https://doi.org/10.2307/1913388

Charnes, A.; Cooper, W. W.; Rhodes, E. 1978. Measuring the efficiency of decision making units, European Journal of Operational Research 2(6): 429–444. https://doi.org/10.1016/0377-2217(78)90138-8

Chen, J. S. 2013. An analysis of China’s rural economic situation in 2012 and outlook for 2013, Chinese Rural Economy 2: 4–11. (in Chinese)

Chen, P. C.; Yu, M.; Chang, C.; Hsu, S. 2008. Total factor productivity growth in China’s agricultural sector, China Economic Review 19(4): 580–598. https://doi.org/10.1016/j.chieco.2008.07.001

Chen, Z.; Song, S. F. 2008. Efficiency and technology gap in China’s agriculture: a regional meta-frontier analysis, China Economic Review 19(2): 287–296. https://doi.org/10.1016/j.chieco.2007.03.001

Chen, Z.; Huffman, W. E.; Rozelle, S. 2003. Technical efficiency of Chinese grain production: a stochastic production frontier approach. Paper prepared for presentation at the American Agricultural Economics Association Annual Meeting, Montreal, Canada, July, 27–30.

Chen, Z.; Huffman, W. E.; Rozelle, S. 2009. Farm technology and technical efficiency: evidence from four regions in China, China Economic Review 20(2): 153–161. https://doi.org/10.1016/j.chieco.2009.03.002

Fan, S. G. 1991. Effects of technological change and institutional reform on production growth in Chinese agriculture, American Journal of Agricultural Economics 73(2): 266–275. https://doi.org/10.2307/1242711

Fan, S. G. 1997. Production and productivity growth in Chinese agriculture: new measurement and evidence, Food Policy 22(3): 213–228. https://doi.org/10.1016/S0306-9192(97)00010-9

Fan, S. G.; Zhang, X. B. 2002. Production and productivity growth in Chinese agriculture: new national and regional measures, Economic Development and Cultural Change 50(4): 819–838. https://doi.org/10.1086/343136

FAO-OECD. 2013. Agricultural Outlook 2013–2022. OECD Publishing.

Färe, R.; Grifell-Tatjé, E.; Grosskopf, S.; Knox Lovell, C. A. 1997. Biased technical change and the Malmquist productivity index, The Scandinavian Journal of Economics 99(1): 119–127. https://doi.org/10.1111/1467-9442.00051

Färe, R.; Grosskopf, S.; Lee, W. F. 1995a. Productivity in Taiwanese manufacturing industries, Applied Economics 27(3): 259–265. https://doi.org/10.1080/00036849500000109

Färe, R.; Grosskopf, S.; Lee, W. F. 2001. Productivity and technical change: the case of Taiwan, Applied Economics 33(15): 1911–1925. https://doi.org/10.1080/00036840010018711

Färe, R.; Grosskopf, S.; Lovell, C. K. 1994a. Production frontiers. Cambridge University Press.

Färe, R.; Grosskopf, S.; Roos, P. 1995b. Productivity and quality changes in Swedish pharmacies, International Journal of Production Economics 39(1): 137–144. https://doi.org/10.1016/0925-5273(94)00063-G

Färe, R.; Grosskopf, S.; Norris, M.; Zhang, Z. 1994b. Productivity growth, technical progress, and efficiency change in industrialized countries, American Economic Review 84: 66–83.

Färe, R.; Grosskopf, S.; Margaritis, D. 2008. Efficiency and productivity: Malmquist and more, Chapter 5, in H. O. Fried, C. A. K. Lovell, S. Schmidt (Eds.). The measurement of productive efficiency and productivity growth. Oxford: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780195183528.003.0005

Fei, R. L.; Lin, B. Q. 2016. Energy efficiency and production technology heterogeneity in China’s agricultural sector: a meta-frontier approach, Technological Forecasting and Social Change 109: 25–34. https://doi.org/10.1016/j.techfore.2016.05.012

Han, G. Q. 2014. Mechanization and dynamic management in modern Chinese agriculture, Acta Agriculturae Scandinavica, Section B – Soil & Plant Science 63: 100–104.

Hayami, Y.; Ruttan, V. M. 1970. Factor prices and technical change in agricultural development: the United States and Japan, 1880–1960, Journal of Political Economy 78(5): 1115–1141. https://doi.org/10.1086/259694

Hayami, Y.; Ruttan, V. M. 1971. Agricultural development: an international perspective. Baltimore: Johns Hopkins University Press.

Hu, B. D.; McAleer, M. 2005. Estimation of Chinese agricultural production efficiencies with panel data, Mathematics and Computers in Simulation 68(5): 475–484. https://doi.org/10.1016/j.matcom.2005.02.002

Huang, J. K.; Rozelle, S. 1996. Technological change: rediscovering the engine of productivity growth in China’s rural economy, Journal of Development Economics 49(2): 337–369. https://doi.org/10.1016/0304-3878(95)00065-8

Ito, J. 2010. Inter-regional difference of agricultural productivity in China: distinction between biochemical and machinery technology, China Economic Review 21(3): 394–410. https://doi.org/10.1016/j.chieco.2010.03.002

Jin, S. Q.; Huang, J. K.; Hu, R. F.; Rozelle, S. 2002. The creation and spread of technology and total factor productivity in China’s agriculture, American Journal of Agricultural Economics 84(4): 916–930. https://doi.org/10.1111/1467-8276.00043

Jin, S. Q.; Ma, H. Y.; Huang, J. K.; Hu, R. F.; Rozelle, S. 2010. Productivity, efficiency and technical change: measuring the performance of China’s transforming agriculture, Journal of Productivity Analysis 33(3): 291–207. https://doi.org/10.1007/s11123-009-0145-7

Karagiannis, G.; Tzouvelekas, V. 2001. Self-dual stochastic production frontiers, and decomposition of output growth: the case of the olive growing farms in Greece, Agricultural and Resource Economics Review 30(2): 168–178. https://doi.org/10.1017/S1068280500001118

Lambert, D. K.; Parker, E. 1998. Productivity in Chinese provincial agriculture, Journal of Agricultural Economics 49(3): 378–392. https://doi.org/10.1111/j.1477-9552.1998.tb01279.x

Li, G. C.; You, L. Z.; Feng, Z. C. 2011. The sources of total factor productivity growth in Chinese agriculture: technological progress or efficiency gain?, Journal of Chinese Economic and Business Studies 9(2): 181–203. https://doi.org/10.1080/14765284.2011.568686

Li, Z.; Zhang, H. P. 2013. Productivity growth in China’s agriculture during 1985–2010, Journal of Integrative Agriculture 12(10): 1896–1904. https://doi.org/10.1016/S2095-3119(13)60598-5

Liu, W. J. 2011. Regional technical efficiency and technology gaps in rural China: evidence from CHIP surveys, China Economic Journal 4(2–3): 125–144. https://doi.org/10.1080/17538963.2011.666058

Luh, Y. H.; Chang, C. C.; Huang, F. M. 2008. Efficiency change and productivity growth in agriculture: a comparative analysis for selected East Asian economies, Journal of Asian Economics 19(4): 312–324. https://doi.org/10.1016/j.asieco.2008.05.003

Ma, S. Z.; Feng, H. 2013. Will the decline of efficiency in China’s agriculture come to an end? An analysis based on opening and convergence, China Economic Review 27: 179–190. https://doi.org/10.1016/j.chieco.2013.04.003

Managi, S.; Karemera, D. 2004. Input and output biased technological change in US agriculture, Applied Economics Letters 11(5): 283–286. https://doi.org/10.1080/1350485042000221526

Mao, W. N.; Koo, W. 1997. Productivity growth, technological progress, and efficiency change in Chinese agriculture after rural economic reforms: a DEA approach, China Economic Review 8(2): 157–274. https://doi.org/10.1016/S1043-951X(97)90004-3

Monchuk, D. C.; Chen, Z.; Bonaparte, Y. 2010. Explaining production inefficiency in China’s agriculture using data envelopment analysis and semi-parametric bootstrapping, China Economic Review 21(2): 346–354. https://doi.org/10.1016/j.chieco.2010.02.004

Nin, A.; Arndt, C.; Preckel, P. V. 2003. Is agricultural productivity in developing countries really shrinking? New evidence using a modified nonparametric approach, Journal of Development Economics 71(2): 395–415. https://doi.org/10.1016/S0304-3878(03)00034-8

Nin-Pratt, A.; Yu, B. X.; Fan, S. G. 2010. Comparisons of agricultural productivity growth in China and India, Journal of Productivity Analysis 33(3): 209–223. https://doi.org/10.1007/s11123-009-0156-4

O’Donnell, C. J. 2012. An aggregate quantity framework for measuring and decomposing productivity change, Journal of Productivity Analysis 38: 255–272. https://doi.org/10.1007/s11123-012-0275-1

Shephard, R. W. 1970. Theory of cost and production functions. Princeton, New Jersey: Princeton University Press.

Tian, W. M.; Wan, G. H. 2000. Technical efficiency and its determinants in China’s grain production, Journal of Productivity Analysis 13(2): 159–174. https://doi.org/10.1023/A:1007805015716

Wang, J. M.; Xiao, H. B. 2013. The nature and prospects of the continuously growth of China’s grain output in 8 years, Issues in Agricultural Economy 2: 22–30. (in Chinese)

Wang, J. M.; Zhang, H. J.; Liu, C. F.; Xiao, H. B.; Liang, X. 2013. Research on the construction of agricultural science and technology extension system in China, Grass-roots Agricultural Technology Extension 1(8): 1–16. (in Chinese).

Wang, X. B.; Rungsuriyawiboon, S. 2010. Agricultural efficiency, technical change and productivity in China, Post-Communist Economies 22(2): 207–227. https://doi.org/10.1080/14631371003740704

Weber, W. L.; Domazlicky, B. R. 1999. Total factor productivity growth in manufacturing: a regional approach using linear programming, Regional Science and Urban Economics 29(1): 105–122. https://doi.org/10.1016/S0166-0462(98)00013-1

Wu, S. X.; Walker, D.; Devadoss, S.; Lu, Y. 2001. Productivity growth and its components in Chinese agriculture after reform, Review of Development Economics 5(3): 375–391. https://doi.org/10.1111/1467-9361.00130

Xin, X. F.; Qin, F. 2011. Decomposition of agricultural labor productivity growth and its regional disparity in China, China Agricultural Economic Review 3(1): 92–100.

Yao, S. J.; Liu, Z. N. 1998. Determinants of grain production and technical efficiency in China, Journal of Agricultural Economics 49(2): 171–184. https://doi.org/10.1111/j.1477-9552.1998.tb01262.x

Yao, S. J.; Liu, Z. N.; Zhang, Z. Y. 2001. Spatial differences of grain production efficiency in China, 1987–1992, Economics of Planning 34(1–2): 139–157. https://doi.org/10.1023/A:1017599518985

Zhang, Y. J.; Brümmer, B. 2011. Productivity change and the effects of policy reform in China’s agriculture since 1979, Asian-Pacific Economic Literature 25(2): 131–150. https://doi.org/10.1111/j.1467-8411.2011.01307.x

Zhou, L.; Zhang, H. P. 2013. Productivity growth in China’s agriculture during 1985–2010, Journal of Integrative Agriculture 12(10): 1896–1904. https://doi.org/10.1016/S2095-3119(13)60598-5