Elements Of Farming Inputs And Allocative Efficiency

The researches on farm households' inputs in production and their allocative efficiency are everlasting topics. With the change of time, farm households' constraint production factors such as labor, capital and land and objective economic environments such as economic institutions and governmental policies are different. Therefore, the researches in this field will reflect characteristics of different ages and different angles.With the deepening market oriented reform in the rural China, it becomes possible for farm households to be engaged in the secondary and tertiary industries and allocate resources at their own wills. Based on the fact that there is a big population and a small supply of land in China and given the economic benefits, most farm households are engaged in cross-sector production, which leads to the declining proportion of fanning income to the gross income in farm households on one hand and the widening income gap among farm households on the other hand. For the farm households at different income levels, the proportions of farming incomes to the gross incomes are different. The proportion of farming income to the gross income in the farm households at the highest income level is the smallest, that in the farm households at the lowest income level is the largest, and that in the farm households at the intermediate income level is in the middle. In such background, based on the theories of neoclassical economics and time panel data of fixed observation spots in Zhejiang during 1995-2003, the paper presents a comparative study of the factors input in farming in farm households at different income levels, the input allocative efficiency and its changing tendency. The paper is composed of the following six parts:Part one briefly describes the research background and angle of the paper, defines the connotations and implications of the basic concepts such as farm households, production factors and farming, explains the data and its collection.Part two is composed of two parts: one briefly reviews the neoclassic theory of factors input and defines the guidelines for analysis; the other briefly reviews the literature and research methods on the factors input in farm households' production (mainly farming) and its allcoctive efficiency, introduce the relationship between this paper and other research.Part three, part four and part five analyze and compare the inputs of production factors in farming in farm households at three different income levels and its changing tendency. According to the definition of production factors, production factors consist of labor, capitaland land. Therefore, the researches of these three parts are conducted from the three aspects respectively. The researches on the input of labor and capital in farming in farm households at three different income levels and its changing tendency are based on the analysis of total input of labor and capital. The researches on the input of land in farming in farm households at three different income levels and its changing tendency are conducted from four perspectives such as farm household's land scale and composition, land circulation, land fragmentation and land utilization. The results show that the inputs of all production factors in farming in three groups of farm households are decreasing at different rates. Generally speaking, the farm households at the highest income levels decrease their input the most, those at the intermediate income levels come second and those at the lowest levels decrease the least. Between 1995~2003, the farm households at the lowest income levels input the most labor and land, those at the intermediate income levels come second and those at the highest levels input the least. Meanwhile, the three groups of farm households input capital differently according to the different phases: the farm households at the highest income levels input the most capital in the first phase; those at the intermediate income levels input the most in the second phase; those at the lowest levels input the most in the third phase. What's more, the changing tendencies and extents of factors inputs of three groups of farm households in different years are also different. Part six studies the resources allocation efficiency and its changing tendency in farm households at three different income levels with DEA model and puts forward measures for improving efficiency. Logically speaking, it's a more profound research of part three, part four and part five. The results show that the allocation efficiencies of production factors in three groups of farm households are all comparatively low and there is little difference among their efficiencies. Between 1995-2003, the allocation efficiencies of production factors in three groups of farm households are not improved significantly; especially the farm households at the highest and intermediate income levels have a tendency of declining. Such low efficiencies of allocating production factors are caused by inefficient output of farming. And the inputs of factors, especially capital are excessive to some extent.