Spatial structure of agricultural production in China

Abstract

The spatial structure of county-level agricultural production in China in 1999 is analysed. A convenient simple method that corrects for both spatial autocorrelation and spatial heterogeneity in the input–output relationships using spatial lag models and an allowance for the response coefficients to vary across relatively homogeneous regions are described. Empirical results suggest an abundant labour supply and extensive use of agricultural machinery reflected in its declining price. Although mechanization is relatively new, machines have replaced fertilizer in agricultural production in the North, Northeast, Northwest and East regions while irrigation and fertilizer are the significantly important inputs in the Central and Southwest regions.

Notes

¹ Chinese provinces/municipalities/autonomous regions can be grouped geographically into seven zones: Central (Henan, Hubei and Hunan), East (Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi and Shandong), North (Beijing, Tianjing, Hebei, Shanxi and Neimonggu), Northeast (Liaoning, Jilin and Helongjiang), Northwest (Shannxi, Gansu,Qinghai, Ningxia and Xijiang), South (Fujian, Guangdong and Hainan) and Southwest (Guangxi, Guizhong, Sichuan, Xizang and Yunnan). Alternative grouping methods do exist, but this grouping method also largely matches the climate zones in addition to economic clusters. Specifically, Central and East China which have warm and humid summers with the coastal regions occasionally subject to cyclones and typhoons; North China comprises a variety of terrains, such as mountain ranges and semi-desert lowlands, and has an extreme continental climate with cold winters and warm summers; Northeast China has cold winters that are influenced by strong northerly continental winds while summers are warm and humid with unreliable rainfall; Northwest interior zone which has an arid desert climate with cold winters and rainfall is distributed evenly throughout the year; South China summers are hot and humid with heavy rainfalls between April and September; and Southwest China is mountainous with the summer temperatures moderated by altitude, while the wet winters are mild with little rain. Tibet and Qinghai are located on the Tibetan plateau where winters are severe with frequent light snow and frost, summers are warm during the day but very cool at night, and rainfall is also heaviest in summer. Tibet and Qinghai are excluded from this analysis due to data limitations and their distinctive climate and agriculture (Cho et al., 2007).

² RMB Yuan is the Chinese currency. One RMB Yuan has been ∼$0.12 for the last two decades though there has been a slight appreciation since 2005.