| We investigate sources of output growth and supply response in rice, wheat, corn, and soybeans, the four most important crops in China's grain sector, during 1978-97. Using a growth accounting methodology, we found large total factor productivity (TFP) contributions to growth in grain production immediately following China's rural economic reform (1978-85). In 1995-97, the TFP contribution dropped to only 16 percent of growth in grain production, as greater use of inputs increasingly drove growth. In the supply response analysis, the results of the econometrically estimated restricted profit function confirm a joint and nonseparable multiproduct technology for China's grain sector. Complementarity prevails in the grain sector among different outputs and... |
