ABSTRACT
The application of the production function in China is characterized as follows. The applied research of the production function in China began in the early 1980s, whereas the research and application of input-output analysis began in the early 1960s, a delay of 20 years. The applied research of the production function is immature, it develops quickly. In China Statistical Yearbook, there is a lack of complete aggregate temporal data, mainly capital data for the whole industry in China. But the aggregate temporal data is relatively complete for publicly-owned industrial enterprises with independent accounting. This chapter introduces the Cobb-Douglas production function with the total agricultural income as dependent variable established by Xigang Zhu from Institute of Agricultural Economy at Chinese Academy of Agricultural Science. The annual growth rate of total agricultural income is 7.08" due to the implementation of a new economic policy, while the agricultural overall efficiency represented by term t is low, which is only 1.05".
