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1 – 10 of over 26000Xiangfei Xin and Fu Qin
The purpose of this paper is to investigate determinants of regional disparities in China's agricultural labor productivity growth.
Abstract
Purpose
The purpose of this paper is to investigate determinants of regional disparities in China's agricultural labor productivity growth.
Design/methodology/approach
This paper first decomposes the regional disparity in China's agricultural productivity growth into its components: technical change, efficiency change and input accumulation per worker. The convergence test is also used to analyze the determinants of regional disparity.
Findings
The paper finds that during 1987 and 2005, although the growth of China's agricultural labor productivity mainly depended on the accumulation of inputs, technical changes contributed more to regional disparities in agricultural productivity growth.
Originality/value
This paper, which studies the determinants of regional disparities in China's agricultural labor productivity growth, contributes to a better understanding of China's agricultural growth and how to reduce the regional inequality. It is indicated that improving efficiency to promote total factor productivity growth is important for agricultural labor productivity growth for the three regions – Eastern, Central and Western – of China. The increase in inputs for Western China, and the improvement in technical change for Central and Western China are significant aspects to promote the growth of agricultural productivity and narrow the gap with Eastern China.
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The purpose of this paper is to assess the role of agriculture in economic growth and its interactions with other sectors of the Tunisian economy.
Abstract
Purpose
The purpose of this paper is to assess the role of agriculture in economic growth and its interactions with other sectors of the Tunisian economy.
Design/methodology/approach
Johansen's multivariate approach is used to study the cointegration of the different sectors of the Tunisian economy and overcome the problem of spurious regression. Special attention is paid to investigate non‐causality between agriculture and other economic sectors.
Findings
Empirical results suggest that all Tunisian economic sectors cointegrate and tend to move together. In addition, weak exogeneity for the agricultural sector is rejected and this underlines the fact that the agricultural sector should be considered by policymakers in the analysis of intersector growth. However, in the short run, agriculture in Tunisia seems to have a partial role as a driving force in the growth of other non‐agricultural sectors and agricultural growth may be conducive only to the agro‐food industry sub‐sector. In addition, while Tunisia started improving quality of services and restructuring the banking sector to make it “internationally” viable, this paper's statistical results indicate that the agricultural sector does not fully benefit from the development of the commerce and services sector and the presence of credit market constraints continue to hamper growth of agricultural output in Tunisia.
Originality/value
Although high importance is placed on the agricultural sector, in the context of the Tunisian economy, the issue of agricultural contribution to the economic growth has often been raised by policymakers but rarely examined empirically.
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Yuan-pei Kuang, Jia-li Yang and Meseret-Chanie Abate
The multidimensional effects of farmland transfer in China have been profoundly unstudied. The purpose of this paper is to provide insights on the effects of the intermediary role…
Abstract
Purpose
The multidimensional effects of farmland transfer in China have been profoundly unstudied. The purpose of this paper is to provide insights on the effects of the intermediary role of agricultural total factor productivity (TFP) of farmland transfer on agricultural economic growth in China.
Design/methodology/approach
Based on the agricultural data of 30 provinces in China over the period 2005–2018, this paper uses the intermediary effect model to test the relationship between farmland transfer, agricultural TFP and agricultural economic growth. This paper employed an intermediary effect test model to investigate the intermediary role of agricultural TFP in the influence of farmland transfer on agricultural economic growth.
Findings
The findings indicated that farmland transfer has a significant effect on promoting agricultural economic growth. There is a significant “inverted U-shaped” relationship between farmland transfer and agricultural TFP. The sample value of 84.3% of farmland transfers in China is still within the TFP promoting effect range. In addition, farmland transfer has an indirect impact on agricultural economic growth through the channel of agricultural TFP. Agricultural TFP plays a significant intermediary role, but the effect is relatively low
Originality/value
This paper is the first to provide fundamental evidence on the impact of farmland transfers on agricultural economic growth in China, driven by agricultural TFP as an intermediary factor. Agricultural TFP can reduce the involution effect of farmland transfer and promote an indirect effect on agricultural economic growth.
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T. S. Jayne, Rui Benfica, Felix Kwame Yeboah and Jordan Chamberlin
Abstract
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Kanan Elumalai and Anjani Kumar
This paper aims to analyze relative contribution of intensive margin (IM) and extensive margin (EM) to growth in India's agricultural exports for the period 2001 to 2020. It also…
Abstract
Purpose
This paper aims to analyze relative contribution of intensive margin (IM) and extensive margin (EM) to growth in India's agricultural exports for the period 2001 to 2020. It also analyses the determinants of IM and EMs through a standard gravity model.
Design/methodology/approach
The study uses export data from United Nations Comtrade, which is accessed through World Integrated Trade Solution (WITS) software. Data for the period 2001 to 2020 were compiled for analysis using the Harmonized System (HS) of commodity classification system at the six-digit level. This study decomposed the contribution of IM and EM in the growth of Indian agricultural trade by using Hummels and Klenow's approach. After performing the export decomposition analysis, the authors analyze the factors influencing IM and EM by using the Tobit regression model and Poisson pseudo-maximum-likelihood (PPML) method of estimation.
Findings
The EM grew at 1.24% per annum, while the intensive margin (IM) increased by 0.23%. The contribution of growth at the EM increased from 58.8% in 2001 to 70.2% in 2020. Export growth along the IM was relatively high for animal products and agricultural raw materials, while growth at the EM was an important contributor to the export growth of horticultural and processed agricultural products. There was a positive and significant effect of the free trade agreement (FTA) on export margins.
Research limitations/implications
More disaggregated commodity-specific studies on value chain analysis would provide valuable insights into the issues hindering exports and realizing the untapped export potential.
Originality/value
There is a scarcity of holistic and recent studies illustrating the role of IM and EMs in agricultural trade growth, covering a large number of commodities and geographies associated with Indian agricultural trade. The study would be helpful to the stakeholders in facilitating informed policy decisions.
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Yali Han, Krishna P. Paudel, Junyi Wan and Qinying He
China's economy has transformed from a high-speed growth phase to a high-quality development phase. The agriculture sector has grown substantially since the economic reform in…
Abstract
Purpose
China's economy has transformed from a high-speed growth phase to a high-quality development phase. The agriculture sector has grown substantially since the economic reform in 1978. Considering the five-year plan (FYP) as a collection of policies, this study explores the relationship between the FYP and agricultural total factor productivity (TFP).
Design/methodology/approach
This study uses 31 provincial-level panel data of the five FYPs from 1996 to 2020. The data envelopment analysis (DEA) is used to compute Malmquist productivity indexes. The authors analyze the temporal and spatial changes and convergences of China's agricultural TFP, and investigate the impact of economic planning on China's agricultural TFP and its regional difference.
Findings
There is a slow but upward growth trend in China's agricultural TFP. The technical change has played a leading role in the growth of China's agricultural TFP. The agricultural TFP of all provinces has shown a “catch-up” effect and is developing toward their respective steady-state levels. The regional difference in productivity growth among the eastern, central and western regions exists. Test results show that the FYP has a positive effect on the agricultural TFP, and the effect has obvious regional heterogeneity. The FYP also plays a positive role in the gross value of agricultural output, and the impact effect is greater than that on the improvement of agricultural productivity.
Originality/value
There are many forms of industrial policy in China, among which the FYP is the guiding document of industrial policy, which makes a systematic plan for industrial development in the subsequent five years. The development objectives, guidelines and overall deployment for agriculture in the FYP not only describe the general context of China's agricultural development but also show the key ideas of agricultural development. Therefore, this study explores its impact on agricultural quality development from the perspective of FYP. The results provide evidence for examining the governance performance of the government and the objective evaluation and restraint of the FYP. As agriculture moves toward the stage of high-quality development, the Chinese government should strengthen the critical guiding role of the FYP and pay attention to quality indicators such as technical progress, efficiency improvement and regional coordination in the formulation of the FYP.
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Alejandro Nin Pratt, Bingxin Yu and Shenggen Fan
This paper aims to measure and compare agricultural total factor productivity (TFP) growth in China and India and relates TFP growth in each country to policy milestones and…
Abstract
Purpose
This paper aims to measure and compare agricultural total factor productivity (TFP) growth in China and India and relates TFP growth in each country to policy milestones and investment in agricultural research.
Design/methodology/approach
TFP is measured using a non‐parametric Malmquist index which allows the decomposition of TFP growth into its components: efficiency and technical change.
Findings
Comparing TFP growth in China and India it is found that efficiency improvement played a dominant role in promoting TFP growth in China, while technical change has also contributed positively. In India, the major source of productivity improvement came from technical change, as efficiency barely changed over the last three decades, which explains lower TFP growth than in China. Agricultural research has significantly contributed to improve agricultural productivity in both China and India. Even today, returns to agricultural R&D investments are very high, with benefit/cost ratios ranging from 20.7 to 9.6 in China and from 29.6 to 14.8 in India.
Originality/value
The applied methodology and the comparison between TFP growth patterns contribute to a better understanding of the consequences that the different approaches to agricultural reform followed by China and India had on the performance of agriculture in both countries.
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Kang Yu, Xiangfei Xin, J. Alexander Nuetah and Ping Guo
The purpose of this paper is to perform an investigative analysis of the distribution of agricultural growth in China and the evolution of the decision mechanism.
Abstract
Purpose
The purpose of this paper is to perform an investigative analysis of the distribution of agricultural growth in China and the evolution of the decision mechanism.
Design/methodology/approach
The kernel density estimation method was used to investigate the distribution of agricultural growth in China using 1988‐2008 panel data of the 29 provinces on the mainland. A nonparametric income distribution approach was employed to decompose China's agricultural output growth into farmland accumulation, capital deepening, labor‐scale change, technical change, and efficiency change based on stochastic frontier function. A further investigation of the evolution of the decision mechanism for agricultural growth was then performed using counterfactual analysis.
Findings
The results of this analysis indicate that: from 1996, the distribution of agricultural output per worker evolved from a unimodal into a bimodal distribution; technical change is the primary impetus to distribution shift; and capital deepening and efficiency change play a dominant role in the deformation of the distribution of agricultural output per worker from a unimodal to a bimodal distribution.
Originality/value
The paper is an original work and its methodology makes a meaningful contribution to understanding China's agricultural growth. That is, the use of income distribution analysis method to analyze agricultural growth does not only allow a more in‐depth understanding of the gap between regional agricultural growth rates, but also makes up for the existing lack of convergence in agricultural growth in China.
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Valentina Hartarska, Denis Nadolnyak and Xuan Shen
In this paper, the authors set out to establish if there is a link between finance and economic growth in rural areas. The purpose of this paper is to evaluate the relation…
Abstract
Purpose
In this paper, the authors set out to establish if there is a link between finance and economic growth in rural areas. The purpose of this paper is to evaluate the relation between credit by major lenders in rural areas – commercial banks and Farm Credit System (FCS) institutions – and economic growth for the period 1991-2010.
Design/methodology/approach
The motivation for this work comes from empirical studies showing a link between economic development and financial system development as well as from work which highlights the positive role of long-term finance provided by banks. The authors use two alternative panel data sets and fixed effects models to estimate the causal effect of credit supply (with lagged explanatory variables) on agricultural GDP growth per rural resident.
Findings
The authors find a positive association between agricultural lending and agricultural GDP growth per rural resident with additional billion in loans (about a third of the actual average) associated with 7-10 percent higher state growth rate with this association stronger during the 1990s. Regional data confirm these results. The results point to a positive link between credit and economic growth in rural areas during that period, attributable to the lending by FCS institutions and by commercial banks.
Research limitations/implications
Data availability limits the scope of this paper. The authors use state level balance sheet data available for the 1991-2003 period and annual data for 2003-2010 period. An additional regional data set is constructed for 1991-2010 with more aggregated data for the ten USDA agricultural production regions. The small number of panels limits the ability to use more sophisticated econometric models and the choice of dependent variables that captures economic growth.
Practical implications
By provides evidence that agricultural finance and in particular lending contribute significantly to the growth of US agriculture, this paper contributes to the policy debate on weather support for agricultural finance initiatives is justified.
Originality/value
The authors are not aware of another study that has linked agricultural lending by commercial banks and FCS institutions to growth in rural areas in the USA.
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Economists have recently emphasized the role which institutional change plays in the process of economic growth and development. Focusing on the behavior of the state, effective…
Abstract
Economists have recently emphasized the role which institutional change plays in the process of economic growth and development. Focusing on the behavior of the state, effective constraints on the ruling elite are seen as a necessary precursor to successful economic growth. However, it is argued in this paper that causality runs the other way. Rapid growth (even with dictatorial regimes) leads to political development and institutional structures which provide a foundation for successful long‐term growth. It will be further argued that the greatest potential for stimulating political development comes as the result of rapid agricultural growth. The institutional constraints arising out of political development create an environment within which the ruling elite become developmental rather than predatory. The cases of English and Japanese industrialization will be used to illustrate these ideas. The relevance of the analyses for today's developing countries is discussed and illustrated with reference to the African experience.