Abstract
This paper innovatively brings the undesirable output of agricultural carbon emission into the agricultural Total Factor Productivity (TFP) accounting framework as a measure of Green Total Factor Productivity (GTFP) and uses the Slack-based Measure and Malmquist-Luenberger (SBM-ML) index method to measure the agricultural GTFP of 24 provinces in China from 2004 to 2016. Further, the two-step system generalized moment method (GMM) is adopted to reveal the effect of agricultural (Foreign Direct Investment) FDI on the growth of agricultural GTFP and various subitems. We find that the average annual growth rate of agricultural GTFP is 3.1%, and its contribution rate to agricultural growth is 52%; the growth of agricultural GTFP shows that the progress of agricultural technology is accompanied by the deterioration of agricultural technical efficiency; the agricultural GTFP in the Eastern region, the Central region and the Western region increases in a stepped-up form, with an annual growth rate of 3.1%, 3.3% and 3.4%, respectively. Agricultural FDI has a significant promoting effect on agricultural GTFP and subitems, however, it has an inverted U-shaped feature in the long term.
Highlights
The improvement of Total Factor Productivity (TFP) should be regarded as the source of driving force for the high-quality economic development in China, which was pointed out in the report of the 19th National Congress of the Communist Party of China
We find that the average annual growth rate of agricultural Green Total Factor Productivity (GTFP) is 3.1%, and its contribution rate to agricultural growth is 52%; the growth of agricultural GTFP shows that the progress of agricultural technology is accompanied by the deterioration of agricultural technical efficiency; the agricultural GTFP in the Eastern region, the Central region and the Western region increases in a stepped-up form, with an annual growth rate of 3.1%, 3.3% and 3.4%, respectively
The Slack-based Measure and Malmquist-Luenberger (SBM-ML) index method is used to measure agricultural GTFP in 24 provinces in China from 2004 to 2016, and the two-step system generalized moment method (GMM) is adopted to carry out the empirical test on the effect of agricultural Foreign Direct Investment (FDI) on agricultural GTFP
Summary
The improvement of Total Factor Productivity (TFP) should be regarded as the source of driving force for the high-quality economic development in China, which was pointed out in the report of the 19th National Congress of the Communist Party of China. Since the reform and expansion, a continuous net flow of the agricultural high-quality production input factors into industrial sectors is witnessed, resulting from the long-standing implementation of the unbalanced development strategy of “city preference and industry priority” and market-oriented reform of factors. This status is still not fundamentally reversed despite the vigorous implementation of a series of national policies with aims to “enhance agriculture” and “benefit the farmers” [4]. This paper reveals the effect of agricultural FDI on GTFP and various sub-items by adopting the Two-Step System Generalized Moment Method (GMM)
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