This study develops a modified two-stage DEA model based on the model of Chen and Zhu (2004) to evaluate China's agricultural efficiency and repaired efficiency (for stricken cultivated land) in a single DEA implementation. The government expenditures and the difference of various cultivated land types are identified as the external influence factors for agricultural efficiency in former works. Those are internalized into the empirical model. The results indicate that the repaired and agricultural efficiencies are positively correlated on a significant level, which implies an efficient utilization of governmental service expenditures that in turn drives high performance in agricultural efficiency. The external effects analysis finds that increasing the degree of education for agricultural employees improves the agricultural efficiency and that developing a mechanized irrigation system is beneficial in enhancing repaired efficiency for fallow land. Information on repaired cultivated land utilization, which was extracted from analysis on optimal ratios and includes the quantity of excess and deficit for each region, is also provided.
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Chiu et al. (2011) studied this question.
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