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Livestock in China: Commodity‐Specific Total Factor Productivity Decomposition Using New Panel Data
Author(s) -
Rae Allan N.,
Ma Hengyun,
Huang Jikun,
Rozelle Scott
Publication year - 2006
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2006.00888.x
Subject(s) - livestock , total factor productivity , productivity , context (archaeology) , production (economics) , china , commodity , agriculture , panel data , agricultural economics , economics , frontier , agricultural productivity , production–possibility frontier , natural resource economics , business , economic growth , econometrics , geography , macroeconomics , market economy , archaeology , forestry
Studies of total factor productivity (TFP) in livestock production are rare, but when available provide useful information especially in the context of developing countries such as China where livestock is becoming more important in the domestic agricultural economy. We estimate TFP for four major livestock products in China employing the stochastic frontier approach, and decompose productivity growth into its technical efficiency (TE) and technical progress components. Efforts are made to adjust and augment the available livestock statistics. The results show that growth in TFP and its components varied between the 1980s and the 1990s as well as over production structures. While there is evidence of considerable technical innovation in China's livestock sector, TE improvement has been relatively slow.