Abstract
Total factor productivity (TFP) growth measures usually focus on a certain direction of optimization and ignore the general setting encompassing the input and output orientations simultaneously. This paper uses the generalized Luenberger-Hicks-Moorsteen (LHM) TFP indicator which is additively complete and can be decomposed by three mutually exclusive elements. The input- and output-oriented analysis is undertaken in order to derive the generalized TFP measured. The paper uses the corn production data from 19 Chinese provinces over the period of 2004–2017. This research is important as China is the second largest corn producer in the world. The TFP growth was observed for Chinese corn farming the rate of 0.56% per year. The technological progress (0.48%) was the major source of the TFP growth, whereas the importance of the technical efficiency change (0.09%) and scale efficiency change (–0.01%) was negligible.
Highlights
China is the second largest maize producer in the world
The cumulative total factor productivity (TFP) growth of maize production increased from 7% in 2007 to 20% in 2008
The results show that the annual growth rate of TFP in maize production was 0.56% during 2004–2017
Summary
China is the second largest maize producer in the world. In 2019, China’s maize farming area was 41,284 thousand hectares and the harvest reached 260.77 million tons (National Bureau of Statistics of China, 2020; Ma et al, 2012; Wang et al, 2019). Maize production in China has recently faced subdued growth. Niu et al Total factor productivity growth in China’s corn farming: an application of generalized. Given the importance of China’s agricultural production for the commodity markets and food security in general, it is important to discuss the major factors of the productivity growth in China’s maize farming and possible policy measures for promotion thereof. The expansion of agricultural activities may affect the sustainability and face an increasing production risk. In this sense, the use of agrochemicals and pesticides should be taken into account
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