In the context of China’s pursuit of high-quality economic development, enhancing agricultural productivity is crucial for ensuring food security and promoting common prosperity. This paper constructs a systematic IV-LP-ACF-SAR econometric framework to analyze agricultural Total Factor Productivity (TFP) growth using panel data from 31 Chinese provinces spanning 2014 to 2023 (n=341 observations). The framework employs the Instrumental Variable (IV)-based Levinsohn-Petrin (LP) proxy variable method under the Ackerberg-Caves-Frazer (ACF) system to estimate a Translog production function while addressing endogeneity using multiple spatial weight matrices. TFP growth is decomposed into Technical Change (TC), Technical Efficiency (EC), and Scale Efficiency (SC). A Spatial Autoregressive (SAR) model with Dynamic Common Correlated Effects (DCCE) explores spatial spillover effects and regional heterogeneity. Results show that China’s agricultural TFP remained largely stagnant from 2014 to 2023 with an average annual growth rate of -0.18%, where Technical Efficiency decline (-0.33% annually) was the main constraint. Technical Change remained neutral, while Scale Efficiency contributed positively (+0.15% annually). Mechanization showed the highest output elasticity (0.99), while fertilizers, pesticides, and labor exhibited negative marginal returns. Spatial analysis revealed significant negative Scale Efficiency spillovers with regional patterns of “scale synergy in the Northeast/Northwest” and “efficiency synergy in East/North China.” These findings suggest that productivity policy should shift toward a dual-driver model combining efficiency enhancement and optimal scaling, with differentiated regional policies and inter-provincial coordination mechanisms necessary to mitigate negative spillovers and enhance sustainable agricultural growth quality.
Tang et al. (Thu,) studied this question.