Livestock in China: Commodity specific total factor productivity decomposition using new panel data

Studies of total factor productivity in livestock production are rare, but when available provide useful information especially in the context of developing countries such as China where livestock is becoming more important in the domestic agricultural economy. We estimate total factor productivity (TFP) for four major livestock products in China employing the stochastic frontier approach, and decompose productivity growth into its technical efficiency and technical progress components. Efforts are made to adjust and augment the available livestock statistics. The results show that growth in TFP and its components varied between the 1980s and the 1990s as well as over production structures. While there is evidence of considerable technical innovation in China's livestock sector, technical efficiency improvement has been relatively slow.