Application of the DEA on the performance evaluation of the agricultural support policy in China
The paper utilizes the data envelopment analysis (DEA) method based on the OECD policy classification to evaluate the performance of the agricultural support policy at the provincial and agricultural commodity levels from the respective viewpoints of agricultural input and output. The analysis at the provincial level mainly focuses on the similarities and differences in the performance of the agricultural support policies between the primary grain-producing areas and the secondary grain-producing areas; at the agricultural commodity level, 17 representative Chinese agricultural commodities are selected and their performance compared. The results are then used to proffer suggestions for the future agricultural support policy optimization in China. The paper found that 50% of the provinces were DEA-efficient, in general, during the study period due to the low overall province-level scale efficiency. The performance values of the secondary grain-producing areas were significantly lower than those of the primary grain-producing areas due to the overall low scale and technical efficiency values. These results show that the support policies for agricultural commodities in China altogether require a further improvement, mainly due to the low technical efficiency of agricultural commodities.
Atici Kazim Baris, Podinovski Victor V. (2015): Using data envelopment analysis for the assessment of technical efficiency of units with different specialisations: An application to agriculture. Omega, 54, 72-83 https://doi.org/10.1016/j.omega.2015.01.015
Banker R. D., Charnes A., Cooper W. W. (1984): Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis. Management Science, 30, 1078-1092 https://doi.org/10.1287/mnsc.30.9.1078
Bervejillo José E., Alston Julian M., Tumber Kabir P. (2012): The benefits from public agricultural research in Uruguay. Australian Journal of Agricultural and Resource Economics, 56, 475-497 https://doi.org/10.1111/j.1467-8489.2012.00599.x
Charnes A., Cooper W.W., Rhodes E. (1978): Measuring the efficiency of decision making units. European Journal of Operational Research, 2, 429-444 https://doi.org/10.1016/0377-2217(78)90138-8
Deng Guangyao, Li Lu, Song Yanan (2016): Provincial water use efficiency measurement and factor analysis in China: Based on SBM-DEA model. Ecological Indicators, 69, 12-18 https://doi.org/10.1016/j.ecolind.2016.03.052
Dimitris D. (2003): The greening of the WTO green box: a quantitative appraisal of agri-environmental policies in OECD countries. In: IATRC Symposium Agricultural Policy Reform and the WTO: Where are we Heading? Capri, June, 23–26, 2003.
El Benni Nadja, Finger Robert (2013): The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions. Journal of Policy Modeling, 35, 638-651 https://doi.org/10.1016/j.jpolmod.2012.03.005
Erokhin V., Ivolga A., Heijman W. (2014): Trade liberalization and state support of agriculture: effects for developing countries. Agricultural Economics – Czech, 60: 524–537.
Fisher Monica, Kandiwa Vongai (2014): Can agricultural input subsidies reduce the gender gap in modern maize adoption? Evidence from Malawi. Food Policy, 45, 101-111 https://doi.org/10.1016/j.foodpol.2014.01.007
Galanopoulos K., Abas Z., Laga V., Hatziminaoglou I., Boyazoglu J. (2011): The technical efficiency of transhumance sheep and goat farms and the effect of EU subsidies: Do small farms benefit more than large farms? Small Ruminant Research, 100: 1–7.
Gao Y., He Y. (2010): Research on Grain Direct Subsidy efficiency of main grain producing areas in China. Journal of Zhongnan University of Economics and Law, 4: 118–123.
Huang Jikun, Wang Xiaobing, Zhi Huayong, Huang Zhurong, Rozelle Scott (2011): Subsidies and distortions in China’s agriculture: evidence from producer-level data*. Australian Journal of Agricultural and Resource Economics, 55, 53-71 https://doi.org/10.1111/j.1467-8489.2010.00527.x
Liu L. (2014): Research on Financial Governance Efficiency Based on Listed Companies of DEA. Donghua University, Shanghai.
Liu S., Zhang S., He X., Li J. (2016): Efficiency change in North-East China agricultural sector: A DEA approach. Agricultural Economics (Zemědělská ekonomika), 61, 522-532 https://doi.org/10.17221/233/2014-AGRICECON
OECD (2009): Agricultural Policies in OECD Countries: At a Glance. OECD: 53–54.
OECD (2013): Agricultural Support Estimates. OECD Agriculture Statistics (database). Available at http://stats.oecd.org/viewhtml.aspx?datasetcode=MON2013_REFERENCE_TABLE&lang=en (accessed Nov 27, 2015).
Theodoridis A., Ragkos A., Roustemis D., Galanopoulos K., Abas Z., Sinapis E. (2012): Assessing technical efficiency of Chios sheep farms with data envelopment analysis. Small Ruminant Research, 107, 85-91 https://doi.org/10.1016/j.smallrumres.2012.05.011
Toma Elena, Dobre Carina, Dona Ion, Cofas Elena (2015): DEA Applicability in Assessment of Agriculture Efficiency on Areas with Similar Geographically Patterns. Agriculture and Agricultural Science Procedia, 6, 704-711 https://doi.org/10.1016/j.aaspro.2015.08.127
Viaggi Davide, Gomez y Paloma Sergio, Mishra Ashok, Raggi Meri (2013): The role of the EU Common Agricultural Policy: Assessing multiple effects in alternative policy scenarios. Land Use Policy, 31, 99-101 https://doi.org/10.1016/j.landusepol.2012.04.019
Vlontzos George, Niavis Spyros, Manos Basil (2014): A DEA approach for estimating the agricultural energy and environmental efficiency of EU countries. Renewable and Sustainable Energy Reviews, 40, 91-96 https://doi.org/10.1016/j.rser.2014.07.153
Wang Y. (2011): OECD Measure to Market Price Support of China’s Agricultural Products. Chinese Agricultural Science Bulletin, 27: 435–438.
Wilfrid L. (2002): The evalution of agricultural policies in OECD countries as reflected by the level and structure of agricultural support. In: Agricultural Policies in China after WTO Accession. OECD, Paris: 246–261.
Zha Yong, Liang Nannan, Wu Maoguo, Bian Yiwen (2016): Efficiency evaluation of banks in China: A dynamic two-stage slacks-based measure approach. Omega, 60, 60-72 https://doi.org/10.1016/j.omega.2014.12.008
Zhang S., Sun T. (2012): Study on the efficiency of agricultural subsidy policy and its influence factors: An empirical analysis based on survey data of 360 households in Henan Province. Journal of Agrotechnical Economics, 12: 68–74.
Zhu M., Cheng G. (2011): Agricultural policies in China: support level, subsidy effect and structural characteristics. Management World, 7: 52–60.
Zong Y., Li X. (2006): The Evaluation on Agricultural Support Level of Agricultural Policy in China. China Soft Science, 7: 33–41.