Agricultural Total Factor Productivity of China:Dynamic Evolution,Regional Differences and the Convergence
Yuequn Cao
Abstract
Yuequn Cao
Abstract
By using the panel data from 1978 to 2007,and based on the method of nonparametric Malmquist index of DEA and the calculation of agricultural TFP,an empirical test is made on the dynamic evolution,structural factors,regional differences and the convergence of TFP.Research finds out that the average annual growth rate of China's agricultural TFP is 6.3%,which includes three stages with the tendency from increase to decrease and increase again.The growth indexes of TFP and the component factors in eastern,middle and western China have significant differences.The main source of TFP growth is technical progress,so the decrease of technical efficiency cannot be ignored.Besides,significant σ convergence does not exist in the whole nation and the three economic belts.Significant absolute and conditional β convergence can be found in the whole nation,the middle and western China,while the β convergence is insignificant in eastern China.
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By using the panel data from 1978 to 2007,and based on the method of nonparametric Malmquist index of DEA and the calculation of agricultural TFP,an empirical test is made on the dynamic evolution,structural factors,regional differences and the convergence of TFP.Research finds out that the average annual growth rate of China's agricultural TFP is 6.3%,which includes three stages with the tendency from increase to decrease and increase again.The growth indexes of TFP and the component factors in eastern,middle and western China have significant differences.The main source of TFP growth is technical progress,so the decrease of technical efficiency cannot be ignored.Besides,significant σ convergence does not exist in the whole nation and the three economic belts.Significant absolute and conditional β convergence can be found in the whole nation,the middle and western China,while the β convergence is insignificant in eastern China.
Key concepts: Total factor productivity, Convergence (economics), Agriculture, Economics, Panel data, China, Econometrics, Technical progress