Abstract
This study estimates the chemical fertilizer efficiency in China's agricultural sector. The Stochastic Frontier Analysis is conducted for corn, rice, and wheat production during the period of 1986-1996. The estimated fertilizer efficiency is then used in the Tobit model to determine the factors affecting efficiency. Stochastic Frontier model indicates that fertilizer efficiency in rice and wheat is decreasing during the estimation period, possibly due to soil degradation and increased used of chemical fertilizer. The Tobit model shows that fertilizier efficiency is affected by several climatic conditions, economic development, and access to commercial fertilizer.
