Technical Efficiency of China’s Agriculture and Output Elasticity of Factors Based on Water Resources Utilization

Shiliang Yang,Jianfeng Ma,Huimin Wang,Shijuan Wu,Fan Zhang,Jinping Tong

doi:10.3390/w12102691

Abstract

A stochastic frontier approach (SFA) model of translog production function was constructed to analyze the growth effect of agricultural production factors on grain production in China. Under the condition of unchanged cultivated land, the agricultural labor, capital, and water were regarded as input elements of the agricultural production function. The maximum likelihood estimation (MLE) method was used to analyze the technical efficiency, output elasticity, substitution elasticity, and relative variability of grain production in China from 2004 to 2018. The results showed that: (1) For the technical efficiency and output elasticity of the input factors of grain production, there were significant differences in different provinces. For example, the water resource was insufficient in Beijing and Shanghai, but the output elasticity of water was high. Heilongjiang was rich in water and had high technical efficiency. For Xinjiang, water was sufficient, but its output elasticity was deficient and the technical efficiency didn’t increase. (2) The overall technical efficiency level was relatively low and was still declining year by year; the output elasticity of water was much greater than that of capital. There was still great potential for grain growth. (3) Optimizing resource allocation and controlling the appropriate ratio of input factors to develop grain production could achieve the maximum benefits. Finally, according to the empirical results, this paper put forward some practical policy suggestions for optimizing the allocation of input factors, especially water and capital, which can ultimately improve agricultural productivity by improving technical efficiency.

Highlights

With the accelerated development of agricultural production, capital, labor, water, and land are becoming increasingly scarce [1], fertilizer and pesticide inputs are increasing, and the ecological environment is deteriorating [2]
The stochastic frontier approach (SFA) model combined with the grain production function was used to study the technical efficiency and the output elasticity of grain production in China from 2004 to 2018
At present, most scholars have considered the efficiency of conventional resources rather than the most important factors of the input of water in grain production and these studies do not provide much attention to in the value of output elasticity, so this paper holds particular significance

Summary

Introduction

With the accelerated development of agricultural production, capital, labor, water, and land are becoming increasingly scarce [1], fertilizer and pesticide inputs are increasing, and the ecological environment is deteriorating [2]. Real options are needed to approach to the challenge of grain production sustainability for water resource protection [6]. Realizing the rational allocation of agricultural production factors and protecting water resources is an issue that needs to be solved for the current sustainable growth of grain [7,8]. Water 2020, 12, 2691 is excessively dependent on the increase of the input factors [9]. This “extensive” production mode will undoubtedly lead to scale inefficiency, redundant inputs, and waste of resources [10]. The high-quality labor, capital, water, and other resources required for agricultural production are attracted to urban areas with increasing returns [11]. In-depth analysis of the technical efficiency of grain production, the output elasticity, substitution elasticity and variation degree of production factors, and handling of the input–output relationship of agricultural production factors are the key to improving the allocation efficiency of grain production factors in China

Objectives

Methods

Discussion

Conclusion