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Interaction and non-neutral effects of factors in Chinese wheat production

Selim, Sheikh Tareq, Parvin, Naima and Patel, Vasita 2010. Interaction and non-neutral effects of factors in Chinese wheat production. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University. Available at: http://business.cardiff.ac.uk/research/working-pap...

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Abstract

In this paper we examine the role of the interaction between labour productivity and the use of factors in explaining the recent (1998-2007) 11% decline in wheat production in China. We employ a non-neutral stochastic production frontier approach that enables us to identify the interaction and non-neutral effects of factors that are used in wheat production. For regional level wheat production in China we find that identifying the technical inefficiency e¤ects and the non-neutral effects of factors assist big time in explaining the recent decline in wheat production. A higher level of labour productivity can stimulate efficiency gains in production, but adding more labour to the workforce or adding to the stock of machinery power can depress this potential marginal efficiency gain. We also find significant marginal efficiency gain of land reforms that add to the stock of cultivable land. Our results indicate that future agricultural reforms in China should address the incentive scheme for labour.

Item Type: Monograph (Working Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: G Geography. Anthropology. Recreation > GF Human ecology. Anthropogeography
H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
J Political Science > JQ Political institutions Asia
Uncontrolled Keywords: China; Stochastic Frontier; Factor Interaction; Non neutrality; Agriculture; Wheat Production.
Publisher: Cardiff University
ISBN: 1749-6101
Date of First Compliant Deposit: 30 March 2016
Last Modified: 09 Jan 2018 19:55
URI: http://orca-mwe.cf.ac.uk/id/eprint/27962

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