Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break Analysis
ABSTRACT Investing in agricultural infrastructure, particularly irrigation systems, is crucial for enhancing agricultural productivity and fostering rural development in developing countries. This study evaluates the impact of irrigation infrastructure investments on total factor productivity (TFP)...
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| Format: | Article |
| Language: | English |
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Wiley
2025-01-01
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| Series: | Asia & the Pacific Policy Studies |
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| Online Access: | https://doi.org/10.1002/app5.70007 |
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| author | Tiantian Zhou Xingshuo Liu Siying Jia Yu Sheng |
| author_facet | Tiantian Zhou Xingshuo Liu Siying Jia Yu Sheng |
| author_sort | Tiantian Zhou |
| collection | DOAJ |
| description | ABSTRACT Investing in agricultural infrastructure, particularly irrigation systems, is crucial for enhancing agricultural productivity and fostering rural development in developing countries. This study evaluates the impact of irrigation infrastructure investments on total factor productivity (TFP) in Chinaʼs crop industry from 1980 to 2018, and also estimates their economic returns across different sub‐periods. We employ a fixed‐effects instrumental variables (FE‐IV) regression model combined with a structural break analysis on provincial‐level data to establish the causal relationship between irrigation investments and TFP growth. The findings reveal that irrigation infrastructure investments have significantly improved TFP in Chinaʼs crop industry over the period, though the marginal returns declined in the last decade. The average internal rate of return for irrigation investments during 2002–2018 is estimated at 11.5%, which is below the long‐term trend of 19.3%. This suggests potential over‐investment or inefficient allocation of resources in recent years, highlighting the need for better optimisation of public investment to sustain productivity gains in agriculture. |
| format | Article |
| id | doaj-art-9fdbf83e307f4b5f8ff0c5121038e98f |
| institution | Kabale University |
| issn | 2050-2680 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Asia & the Pacific Policy Studies |
| spelling | doaj-art-9fdbf83e307f4b5f8ff0c5121038e98f2025-01-31T08:45:15ZengWileyAsia & the Pacific Policy Studies2050-26802025-01-01121n/an/a10.1002/app5.70007Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break AnalysisTiantian Zhou0Xingshuo Liu1Siying Jia2Yu Sheng3School of Advanced Agricultural Sciences Peking University Beijing ChinaSchool of Advanced Agricultural Sciences Peking University Beijing ChinaSchool of Advanced Agricultural Sciences Peking University Beijing ChinaSchool of Advanced Agricultural Sciences Peking University Beijing ChinaABSTRACT Investing in agricultural infrastructure, particularly irrigation systems, is crucial for enhancing agricultural productivity and fostering rural development in developing countries. This study evaluates the impact of irrigation infrastructure investments on total factor productivity (TFP) in Chinaʼs crop industry from 1980 to 2018, and also estimates their economic returns across different sub‐periods. We employ a fixed‐effects instrumental variables (FE‐IV) regression model combined with a structural break analysis on provincial‐level data to establish the causal relationship between irrigation investments and TFP growth. The findings reveal that irrigation infrastructure investments have significantly improved TFP in Chinaʼs crop industry over the period, though the marginal returns declined in the last decade. The average internal rate of return for irrigation investments during 2002–2018 is estimated at 11.5%, which is below the long‐term trend of 19.3%. This suggests potential over‐investment or inefficient allocation of resources in recent years, highlighting the need for better optimisation of public investment to sustain productivity gains in agriculture.https://doi.org/10.1002/app5.70007Chinacrop TFPdynamic influenceinternal rate of returnirrigation |
| spellingShingle | Tiantian Zhou Xingshuo Liu Siying Jia Yu Sheng Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break Analysis Asia & the Pacific Policy Studies China crop TFP dynamic influence internal rate of return irrigation |
| title | Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break Analysis |
| title_full | Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break Analysis |
| title_fullStr | Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break Analysis |
| title_full_unstemmed | Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break Analysis |
| title_short | Exploring the Impact of Irrigation on Chinaʼs Crop TFP: Insights From a Structural Break Analysis |
| title_sort | exploring the impact of irrigation on china s crop tfp insights from a structural break analysis |
| topic | China crop TFP dynamic influence internal rate of return irrigation |
| url | https://doi.org/10.1002/app5.70007 |
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