Industry and entrepreneurship


Innovation, Agricultural Productivity and Sustainability in China

The expansion of agricultural production in China has been remarkable, but at the expense of the sustainable use of its natural resources. To counter this, as well as to face problems due to rising labour costs and a rapidly ageing rural population, agricultural production must concentrate on a smaller number of more productive farms. It is in this light that this report reviews recent policy developments to assess whether they have been conducive to productivity growth and environmental sustainability. It finds that the conditions for structural change and innovation at the farm level in China could be further improved by securing the long-term stability of land rights as well as reducing transaction costs. Greater policy coherence with agri-environmental policy objectives could also be achieved through stricter enforcement of environmental regulations. Finally, the agricultural innovation system could play a greater role by placing the focus on public agricultural R&D in areas such as the environment and resource conservation, and in other areas which do not attract much private sector investment.  

Published on October 04, 2018

In series:OECD Food and Agricultural Reviewsview more titles


Executive summary
Overall assessment and recommendations
Overview of the food and agriculture situation in China
Economic and institutional environment in China
Capacity building and public services in China
Agricultural policy in China
The agricultural innovation system in China
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