Impact Assessment of Growth Drag on Agricultural Economy: An Empirical Evidence from China

Authors: Jun Bo Xue*, Institute of Science and Development, Chinese Academy of Sciences, Mengzhen Zhao, Institute of Science and Development, Chinese Academy of Sciences, zhenhua chen, The Ohio State University,
Topics: Economic Geography, China, Agricultural Geography
Keywords: growth drag; water resource; land resource; energy resource; technological progress
Session Type: Paper
Day: 4/10/2018
Start / End Time: 4:40 PM / 6:20 PM
Room: Mid-City, Sheraton, 8th Floor
Presentation File: No File Uploaded


New Growth Theory suggests that resource consumption leads to a decline in economic growth due to the influence of economic growth drag. In this paper, the impact of growth drag on agricultural economy is evaluated empirically based on the case of China for the period 1978-2011 using a time-series regression analysis. The results show that estimated coefficient of the total agricultural growth drag in China is 1.32 percent, which suggests that the annual agricultural growth is associated with 1.32 percent decline due to the scarcities of land, water and energy. Specifically, the growth drags from land, water and energy are found to be 0.5 percent, 0.44 percent, and 0.38 percent respectively. In addition, our study also shows that capital contributes around 76.86 percent to the growth of agricultural economy, whereas the contributions from land, energy, water and technological progress are relatively small. Correspondingly , labor is found to have a negative contribution of -1.19 percent to agricultural growth in China

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