Re-estimating Physical Inputs and Sectoral Productivity Growth in Chinese Agriculture: Quantile Regression Approach

Owusu Samuel Mensah, Zhuang Jincai, Henry Asante Antwi, Thomas Bilaliib Udimal


The desire to increase food production in the midst of an escalating population growth and international food demand has been a critical issue under discussion. This paper employed quantile regression approach to identify the heterogeneous effect of physical inputs on growth of Chinese agriculture for different production levels from 1978 to 2014. The results revealed that the yield effect of land, labor, agricultural machinery, irrigation, energy and fertilizer application differ in both patterns and magnitude across the selected quantile points and OLS estimate results. However, the effect of fertilizer application is significantly positive on crop and livestock production, which is 2-4 times higher than the contribution of land and irrigation. However, since increase in fertilizer application is posing a lot of threat to the environment and causing low quality of food production, the study proposes development of fertilizer-sensitive technologies and sensitization of farmers on the application of N fertilizers to reduce the menace.

Keywords: Agricultural growth; physical inputs; quantile regression; PR China

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