Farm Technology and Technical Efficiency: Evidence from Four Regions in China

In this paper we fit stochastic frontier production functions to data for Chinese farms grouped into each of four regions-North, Northeast, East, and Southwest-over 1995-1999. These frontier production functions are shown to have statistically different structures, and the marginal product information shows overuse of chemical inputs in the East and capital services in the North. Labor also has a low marginal product. Next, we use the data and the production parameters to create technical efficiency scores for each of the farms and then standardize them. Standardized technical efficiency is shown to have the same structure across regions and to be related to the age of the farmer, land fragmentation, and the village migration rate, controlling for year dummies and village or regional fixed effects.


Issue Date:
2006
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/18210
PURL Identifier:
http://purl.umn.edu/18210
Total Pages:
25
Series Statement:
ISU Economics Working Paper #06022




 Record created 2017-04-01, last modified 2018-01-22

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