Are China’s regional agricultural productivities converging: How and why? |
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| Institution: | 1. China Center for Agricultural Policy, School of Advanced Agricultural Sciences, Peking University, China;2. Center for Chinese Agricultural Policy, Institute of Geographical Sciences and Natural Resources Research, Chinese Academy of Sciences, China;3. Center for Food Security and the Environment, Freeman Spogli Institute, Stanford University, United States;1. State Key Laboratory of Grassland Agro-ecosystems, College of Pastoral Agricultural Science and Technology, Lanzhou University, No. 768 Jiayuguan West Road, Chengguan District, Lanzhou 730020, China;2. China Center for Agricultural Policy, School of Advanced Agricultural Sciences, Peking University, Wangkezhen Building, No. 5 Yiheyuan Road, Haidian District, Beijing 100871, China;3. School of Economics and Management, Jiangxi Agricultural University, Nanchang 330045, China;1. China Center for Agricultural Policy, School of Advanced Agricultural Sciences, Peking University, China;2. International Food Policy Research Institute, China;3. Freeman Spogli Institute for International Studies, Stanford University, United States;1. School of Humanities and Social Sciences, Beijing Institute of Technology, 5 South Zhongguancun Street, Beijing 100081, China;2. Department of Agricultural, Food and Resource Economics, Rutgers, The State University of New Jersey, 55 Dudley Road, New Brunswick, NJ 08901, United States of America;3. School of Management and Economics, Beijing Institute of Technology, 5 South Zhongguancun Street, Beijing 100081, China;4. Science and Technology Development Center of Ministry of Agriculture and Rural Areas, Nongfeng Building No. 96, South East Third Ring Road, Chaoyang District, Beijing, China |
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| Abstract: | This article tests the hypotheses of convergence to a single level of total factor productivity (TFP), and a steady state of TFP growth rate in China’s agricultural sector. Based on multilateral TFP estimates we found that China’s agricultural sector has rebounded in recent years from a slower TFP growth in the 2005–2007 period. While convergence test results confirm a “catch-up” effect that provinces with lower TFP levels tend to grow faster than others, estimated rates of β convergence are conditional on how we capture the heterogeneity effect across regions. The rates of β convergence range from 0.016 to 0.039 under different model specifications. Estimates show that higher growth rates of educational attainment, R&D, and intermediate goods density (per unit of labor) can enhance TFP growth. Unfortunately, there is no evidence of an overall σ convergence, indicating that TFP levels are not converging except in the South region. It implies that to catch up with leading provinces, it would require extra efforts for those lagging behind by increasing their region-specific research investment, promoting rural educational attainment, and enhancing embodied technical change. |
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| Keywords: | Total Factor Productivity (TFP) σ convergence β convergence Multilateral TFP China agricultural productivity growth R&D Time series analysis Agricultural policy O13 O47 Q16 |
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