Abstract

AbstractThe basic objective of this study was to investigate and explore the relationship between major food crops of China and their relationship with agricultural gross domestic product (GDP) using an econometric analysis. Agriculture is considered an important sector of the Chinese economy as it accounted for about 10% of GDP. The total agricultural land of China covers 36% of the area of the world. In order to highlight the actual performance of the agricultural production and the output of major food crops, this study explored the relationship between agricultural GDP and the major crops output including wheat, cotton, rice, sugarcane, corn, and tubers in China over the period of 35 years from 1980 to 2015. The time series data were collected from the China Bureau of Statistics, Ministry of Agriculture China and various publications. Crop data were analyzed using the Ordinary Least Square Method and Augmented Dickey Fuller test and results were interpreted using the Johansen co-integration test. Our ...

Highlights

  • China has the world’s largest population and is the largest food consumer in the world: it feeds 20% of the population of the world and consumes an average of approximately 5 million tons of food annually

  • Our study found that output of wheat, cotton, sugarcane, corn, and tubers has positive and significant relation with the agricultural gross domestic product (AGDP) of China, while the output of rice crop has a negative but no significant relation with agricultural GDP of China

  • From the Ordinary Least Square (OLS) regression result, the high values of R2 are 0.874 or 87.4% and the Adjusted-R2 is 0.843 or 84.3%. This implies that about 84% of total change in AGDP is explained by the independent variables

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Summary

Introduction

China has the world’s largest population and is the largest food consumer in the world: it feeds 20% of the population of the world and consumes an average of approximately 5 million tons of food annually. The challenges faced by developing countries and the constraints on agricultural development and food safety and security require livelihood security and rural development. This vigorous framework requires innovative facilities and operations for its management systems and agricultural output, if it is to be contributing to socioeconomic and conservational development. From this point of view it can be said that in the 40 years agricultural output, facilities and operations will have to increase production of agriculture by at least 70% (Kilelu, Klerkx, & Leeuwis, 2013). In order to meet these requirements, agricultural strategies and policies must improve the necessary conditions and efficiency of agricultural productivity, make opportunities and ensure sustainability through new agricultural perceptions and standards such as special agricultural crops method innovation and direction (OECD, 2013)

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