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Technology capital: the price of admission to the growth club

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  • Robert Evenson
  • Keith Fuglie

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Abstract

We assess long-run patterns of global agricultural productivity growth in developing countries between 1970 and 2005 and examine the relationship between investments in technology capital and productivity. To measure agricultural total factor productivity (TFP) we employ a Solow-type growth accounting method to decompose output growth into input and TFP growth. For technology capital we construct two indexes reflecting national capacities in agricultural research and education-extension for 87 developing countries. We then correlate technology capital levels with long-term growth rates in agricultural TFP. Our findings show that average agricultural TFP growth in developing countries accelerated in the 1980s and 1990s but fell marginally in the early 2000s. TFP performance was very uneven across countries and regions. TFP growth rates by individual countries were significantly influenced by their levels of technology capital. Marginal improvements to research capacity, given a minimal level of extension and schooling existed, were associated with faster TFP growth. However, marginal increases in extension-schooling without commiserate improvements in research capacity did not improve productivity performance.

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File URL: http://hdl.handle.net/10.1007/s11123-009-0149-3
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Bibliographic Info

Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 33 (2010)
Issue (Month): 3 (June)
Pages: 173-190

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Handle: RePEc:kap:jproda:v:33:y:2010:i:3:p:173-190

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Web page: http://www.springerlink.com/link.asp?id=100296

Related research

Keywords: Agricultural development; Agricultural extension; Agricultural research; Land quality; Agricultural cost shares; Growth accounting; Total factor productivity (TFP); Q10; O47; O57;

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References

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  1. Keith Fuglie, 2004. "Productivity growth in Indonesian agriculture, 1961-2000," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(2), pages 209-225.
  2. V. Eldon Ball & Jean-Christophe Bureau & Richard Nehring & Agapi Somwaru, 1997. "Agricultural Productivity Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1045-1063.
  3. Fan, Shenggen & Zhang, Xiaobo, 2002. "Production and Productivity Growth in Chinese Agriculture: New National and Regional Measures," Economic Development and Cultural Change, University of Chicago Press, vol. 50(4), pages 819-38, July.
  4. Evenson, Robert E. & Pray, Carl E. & Rosegrant, Mark W., 1999. "Agricultural research and productivity growth in India:," Research reports 109, International Food Policy Research Institute (IFPRI).
  5. Ludena, Carlos & Hertel, Thomas & Preckel, Paul & Foster, Kenneth & Nin Pratt, Alejandro, 2006. "Productivity Growth and Convergence in Crop, Ruminant and Non-Ruminant Production: Measurement and Forecasts," GTAP Working Papers 2220, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  6. Wiebe, Keith D. & Soule, Meredith J. & Narrod, Clare A. & Breneman, Vincent E., 2000. "Resource Quality And Agricultural Productivity: A Multi-Country Comparison," 2000 Annual meeting, July 30-August 2, Tampa, FL 21723, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers 42, Center for International Development at Harvard University.
  8. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628 Elsevier.
  9. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
  10. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
  11. Barbara J. Craig & Philip G. Pardey & Johannes Roseboom, 1997. "International Productivity Patterns: Accounting for Input Quality, Infrastructure, and Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1064-1076.
  12. Peterson, Willis L., 1987. "International Land Quality Indexes," Staff Papers 13877, University of Minnesota, Department of Applied Economics.
  13. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
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Cited by:
  1. Lunduka, Rodney & Fisher, Monica & Snapp, Sieglinde, 2012. "Could farmer interest in a diversity of seed attributes explain adoption plateaus for modern maize varieties in Malawi?," Food Policy, Elsevier, vol. 37(5), pages 504-510.
  2. Fuglie, Keith O. & Rada, Nicholas E., 2013. "Resources, Policies, and Agricultural Productivity in Sub-Saharan Africa," Economic Research Report 145368, United States Department of Agriculture, Economic Research Service.

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