Total factor productivity growth in china’s corn farming: An application of generalized productivity indicator

Zhiyong Niu, Yining Zhang, Tianxiang Li, Tomas Baležentis, Dalia Štreimikienė, Zhiyang Shen*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    9 Citations (Scopus)

    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.

    Original languageEnglish
    Pages (from-to)1189-1208
    Number of pages20
    JournalJournal of Business Economics and Management
    Volume22
    Issue number5
    DOIs
    Publication statusPublished - 27 Aug 2021

    Keywords

    • Corn production
    • Data envelopment analysis
    • Efficiency change
    • Luenberger-Hicks-Moorsteen indicator
    • Technological progress
    • Total factor productivity

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