The Impact of Agricultural Service on Grain Production in China

The development of agricultural services was the most important change in China's agricultural production in the past 20 years. Using nationally representative provincial-level panel data, this study shows that agricultural service has a positive impact on technical efficiency at a significance level of 0.06. Based on this study, if the share of agricultural service cost increases by 1%, technical efficiency will increase by 0.35%. In other words, this study provides an empirical explanation of the positive impact of agricultural service on productivity. Due to the heterogeneity of agricultural service, technical efficiency in Eastern China and major grain production regions is higher than that in other regions. Finally, this study confirms the convergence of technical change in China's grain production.