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ECONOMIES OF SCALE AND SCOPE AND THE ECONOMIC EFFICIENCY OF CHINA'S AGRICULTURAL RESEARCH SYSTEM*
Author(s) -
Jin Songqing,
Rozelle Scott,
Alston Julian,
Huang Jikun
Publication year - 2005
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.1468-2354.2005.00356.x
Subject(s) - scope (computer science) , economies of scope , economies of scale , china , agriculture , production (economics) , economics , agricultural economics , scale (ratio) , economy , geography , biology , macroeconomics , ecology , cartography , archaeology , computer science , microeconomics , programming language
This article investigates economies of scale and scope and other potential sources of improvements in the economic efficiency of China's crop breeding, an industry at the heart of the nation's food economy. Using data covering 46 wheat‐ and maize‐breeding institutes from 1981 to 2000, we estimate cost functions for the production of new varieties at China's wheat‐ and maize‐breeding institutes. Our results indicate strong economies of scale, along with small to moderate economies of scope related to the joint production of new wheat and maize varieties. Cost efficiency increases significantly with increases in the breeders' educational status and with increases in access to genetic materials from outside the institute.