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Title: AGRICULTURAL PRODUCTIVITY IMPACTS OF ENVIRONMENTAL DEGRADATION IN POST-REFORM CHINA

Author
item WU, SHUNXIANG - USDA ARS RSML
item Lu, Yao
item PRETO, TONY - UNIVERSITY OF MISSOURI

Submitted to: Agricultural Economics Review
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 7/30/2000
Publication Date: N/A
Citation: N/A

Interpretive Summary: While enjoying high rates of economic growth, China has suffered the problem of the environmental degradation causing a variety of health problems and damages to social welfare. Assessing the causes and effects of environmental degradation is a high priority. This study examined the temporary and spatial patterns of productivity growth and its determinants in Chinese's agricultural sector during the economic transition period. We identified the leader and laggard in environmental quality based on an environmental quality index. The recommended policy for enhancing environmental quality includes increasing investment, targeting control efforts to a vulnerable area, designing effective response policy, and improving educational programs.

Technical Abstract: Growth in agricultural productivity and its determinants were measured for China's post-reform period. For the nation as a whole, productivity grew at an average annual rate of 3.2 percent from 1980 to 1996. Technical progress augmented productivity growth by 3.9 percent and efficiency change reduced growth by 0.7 percent. Environmental change contributed slightly to productivity increases relative to the case in which environmental change is ignored. Productivity and its determinants varied substantially over years and provinces. There was a trend toward deteriorating environmental and efficiency performance. Lower provincial growth resulted from reduced efficiency, lower environmental quality, and slower technical progress. Increasing innovation, efficiency, and environmental protection through capital investment in agriculture, development of effective policies, and educational programs would augment productivity growth in Chinese agriculture.