Li, Yujie
(2024)
Technical Efficiency Of Agriculture Sector In Shaanxi, China.
PhD thesis, Universiti Sains Malaysia.
Abstract
As living standards improve, the demand for agricultural products increases.
However, in Shaanxi Province, China, the agricultural production has not met this
increasing demand. In Shaanxi, none of the three agricultural subsectors—crop
farming, livestock, and fishery—achieve self-sufficiency. Consequently, the province
must rely on other regions or imports to meet its agricultural needs. Increasing input
utilisation to boost yield is not considered a sustainable practise. Instead, the Shaanxi
government aims to improve agricultural technical efficiency, which means
increasing output while maintaining the same level of input. To address this issue,
this study investigates the technical efficiency and causes of technical inefficiency in
Shaanxi’s each agriculture subsector using Data Envelopment Analysis (DEA) and
Tobit regression. In the crop farming subsector in Shaanxi province, there is notable
technical inefficiency. It is noteworthy that the cucumber and tomato grown in the
glasshouse exhibit decreasing returns to scale and lower technical efficiency scores
compared to those cultivated in open fields. This suggests that Shaanxi policymakers
should prioritise promoting advanced cultivation methods and invest in improving
the efficiency of glasshouse cultivation before increasing the number of glasshouses.
Additionally, the cultivation of diverse crops such as carrots, Chinese cabbage, and
eggplants has the potential to significantly enhance the overall production and
technical efficiency of the Shaanxi’s crop farming subsector. These crops can be
promoted for cultivation on new arable land or used to replace less efficient crops.
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