An Empirical Study On Grain Production Efficiency In Zhejiang Province

Grain is always constantly an important issue about national economy and the people's livelihood in China. Both agricultural industrial structure and grain production efficiency are changing in Zhejiang Province as the process of agricultural products marketization all over China. The grain production efficiency is the essential basis of estimating the agricultural structure adjustment and comparative advantages under the market economy condition. This study firstly calculates the total factor productivity of grain production based on the approach of non-parametric Malmquist Index with the panel data of 11 districts in Zhejiang Province during 1987-2007; Secondly, this study investigates the TFP changes from technical efficiency change and technical progress approach; In the final part of empirical analysis, this study applies slack variable analysis in four cross-sectional city based on out-oriented BCC model to find the best grain production input-output proportionThis study shows that the whole efficiency of grain production in Zhejiang Province has been rising and the production level has also been improving during the agricultural structure adjustment in recent two decades. Seeing from regional results, different agriculture development strategies should advised for three regions respectively. North Zhejiang has kept great comparative advantages and should be ensured of production scale to improve grain production for grain safety. East Zhejiang has not enough comparative advantage and its TFP increasing is originated from technology improvement, management innovation and appropetive production scale. In East Zhejiang, the focus is not to make every effort to insure grain production scale but to emphasize on improving production efficiency. Southwest Zhejiang has been totally at a disadvantage in grain production.and restricted by the application of new technology and management skill. But in Southwest Zhejiang, its grain production scale is appropriate and it still has the advantages in agricultural extension and existing management methods. According to this, Southwest Zhejiang should develop characteristic agriculture by takeing advantage of its special agricultural resources. Before the year of 2001 when Zhejiang comprehensive opened both grain buying and selling market, there is no significant difference with input redundancy in three regions. But after 2001, input redundancy appealed in large quantities, especially the labor force and land input. It shows that human resource and grain-sown area are the essential obstacles to further growth of the grain production efficiency in Zhejiang Province. Accordingly, the authority should not only focus on transfer and education of rural labor but also pay attention to improve the quality of lands for grain production.