Impacts of Rural Labor Resource Change on the Technical Efficiency of Crop Production in China

Author

Ning Yin (ningyin2016@foxmail.com) and Yapeng Wang (wangyp@mail.hzau.edu.cn)
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Agriculture, 2017, vol. 7, issue 3, 1-12

Abstract: This paper probes effects of the evolvement of labor resources on technical efficiency in crop production in rural China. Based on twelve years of data on crop production of 30 provinces in China, a stochastic frontier production function model is used to measure crop production efficiency in three crop-functional areas—the production area, the consumption area, and the balanced area. Then effects of both quantity and quality change in labor force on technical efficiency in different regions of China are analyzed. Results show that rural China generally has an increasing number of employees shifted to non-agricultural sectors and a decreasing trend of the stock of human capital. However, both these two changes in rural labor force have significantly positive effects on improving crop production efficiency. In addition, China’s technical inefficiency is at an average of 22.2%. Dynamically, the technical efficiencies show a tendency to rise steadily throughout China and in three areas, while the consumption area possesses the highest technical efficiency. Those results may lend some experience for other countries that are currently experiencing rural labor force and economic transition.

Keywords: labor; rural migration; human capital; technical efficiency; crop production (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2017
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