Productivity Growth and its Components in Chinese Agriculture after Reforms

Abstract

This study uses nonparametric Malmquist procedures to investigate the temporal and spatial nature of productivity growth and its components in Chinese agriculture over the period 1980–1995. The results of this study indicate that total factor productivity grew at 2.4% annually with technical change augmenting the growth by 3.8% while efficiency change reduced productivity growth by 1.3%. For all provinces, 288 out of a total of 442 cases experienced productivity growth while the rest showed productivity regression during this post‐reform period. Coexistence of improvement in technical change and retardation in efficiency change indicates the lack of success in diffusing the existing agricultural technology. Continuing innovation and efficiency improvement through capital investment, modern input use, and greater competitive market pressures are important for augmenting productivity growth in Chinese agriculture.