Measurement of corn production efficiency in different counties of Hebei Province, China: A model based on data envelopment analysis

Abstract

This study measures the production efficiency of corn in Hebei Province, China, basing on an inputoriented DEA model with the assumption of Variable Return to Scale (VRS). In this framework, 2 outputs and 6 inputs are included, based on the agricultural product survey conducted by Price and Cost Inspection Bureau of Hebei in 2008. The 44 counties sampled are treated as the Decision Making Units (DMUs). The result shows that, 22 counties are fully efficient and in the status of constant returns to scale; in 7 counties, production efficiency can only be improved through adjusting the farming scales; in the rest 15 counties, production efficiency can be improved through either reducing the inputs or compressing the farming scales. Slack analysis of outputs shows that comparing with technical improvement, much more margin lies in the socio-economic optimization. Meanwhile, the liquid inputs are similar in the efficient and inefficient counties, with less slack and radial movements; large differences, slack and radial movements exist amongst inputs connecting with the construction of agricultural infrastructure. Furthermore, production efficiency in corn and wheat are compared with the adoption of Crosstabs Analysis. Finally, policy implications are put forward, concerning the adjustment of farming scales, marketing facilitation thus improve the added value, construction of irrigating infrastructure and agricultural mechanization.