Study on total factor productivity of Chinese tea industry and regional disparity based on dea-malmquist model

Abstract

-The primary purpose of this study was to estimate and decompose Total Factor Productivity of tea industry in China to explore the resource of technical efficiency. The data was collected from the major 18 tea producing provinces in China 2015-2019. The data envelopment analysis (DEA) program and DEAMalmquist index was used to estimate the efficiency scores. Results revealed that TFP has been increasing and there are great differences in TFP among different provinces. The major reason for improvement of TFP was the increasing technological change and technical efficiency was influenced by pure technical efficiency and scale efficiency. The findings suggest that the elderly and better educated farmers combined their previous knowledge of farming adopting proper farming practices may achieve production efficiency.