Productivity growth, technical efficiency, and technical change in China’s soybean production

Abstract

A stochastic frontier production function (SFPF) is specified to examine productivity growth, technical efficiency, and technical change in China’s soybean sector. A panel data set of 12 major soybean-producing provinces across the nation during the period of 1983 to 2007 was used. Results indicate that total factor productivity for China’s soybean production increased by 1.5% annually, with productivity growth, mainly, from technological progress. However, both technical efficiency and technical progress showed a decreasing trend through time. Clearly, market liberalization has produced negative impact on China’s soybean productivity. Key words: Stochastic frontier production function, total factor productivity, technical efficiency, technical change, China, soybean production.