Determinants and Differences of Grain Production Efficiency Between Main and Non-Main Producing Area in China

Abstract

This paper investigated the determinants, especially labor transformation, and differences of technical efficiency between main and non-main grain-producing area in China based on a panel data from 30 provinces in the period of 2001–2017. Stochastic frontier production function was used to estimate the level of technical efficiency and the marginal productivity of different inputs. The estimated results showed that land is the most important factor to improve China’s grain output, followed by fertilizers, labor, and machinery inputs. There was a significant 4.6 percent gap of production efficiency between main and non-main producing provinces. Influence of rural labor transformation was confirmed to be positive to improve technical efficiency.