The Impact of Public Expenditure and International Trade on Agricultural Productivity in China |
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Authors: | Binlei Gong |
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Affiliation: | Department of Agricultural Economics and Management, School of Public Affairs, China Academy for Rural Development (CARD), Zhejiang University, Hangzhou, Zhejiang, China |
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Abstract: | The “industry nurturing agriculture” reforms and World Trade Organization accession led to dramatic growth in public expenditure and international trade in China’s agricultural sector. This article aims to estimate the effects of public expenditure and trade on agricultural productivity in China for 2004–2015. A semi-parametric production function with shape constraints is introduced to derive more accurate productivity before the productivity determinants are analyzed with an emphasis on public expenditure and trade. The empirical result shows that public expenditure and exports can effectively improve agricultural productivity, while imports have no significant effects. Policy implications are discussed in the context of supply-side reforms. |
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Keywords: | China’s agricultural productivity China’s supply-side reforms effects of public expenditure and trade semi-parametric model under shape constraints Stochastic Frontier Analysis |
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