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Factor Substitution in Colombian Agriculture

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  • Wayne Thirsk

Abstract

A declining labor share in agriculture is consistent with an elasticity of substitution between labor and other factors greater than unity. Using cross-section data drawn from a small sample of Colombian crop farms, this study develops a three-factor model and estimates the Allen-Uzawa partial substitution elasticities between the factor-pairs land, labor, and farm machinery. Both Ordinary and Generalized Least Squares estimation procedures provide elasticity estimates that agree with each other and with the results of recent and related research: a substitution elasticity between labor and machinery (capital) of about one and a half is strongly indicated.

Suggested Citation

  • Wayne Thirsk, 1974. "Factor Substitution in Colombian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 73-84.
    • Handle: RePEc:oup:ajagec:v:56:y:1974:i:1:p:73-84.
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    File URL: http://hdl.handle.net/10.2307/1239348
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    Cited by:

    1. Ricardo Arguello C & Daniel Valderrama G. & Sandra Acero W., 2011. "Poverty impacts of agricultural policy adjustments in an opening economy: the case of Colombia," Documentos de Trabajo 8575, Universidad del Rosario.
    2. Ricardo Argüello & Daniel Valderrama-Gonzalez, 2015. "Sectoral and poverty impacts of agricultural policy adjustments in Colombia," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 259-280, March.
    3. Guèye, Adama, 2014. "Normes SPS et compétitivité-qualité de la filière fruits et légumes frais au Sénégal," Conference papers 332558, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Msangi, Siwa & Rosegrant, Mark, 2007. "A Closer Look at the IMPACT of Climate Change on Country-Level Food Security and Nutrition," Conference papers 331635, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Mayer, Thomas, 1982. "Export diversification as a counter to export instability: The example of Columbia," Kiel Working Papers 145, Kiel Institute for the World Economy (IfW Kiel).
    6. Kyle, Steven, 1991. "Measuring The Effects Of Real Exchange Rate Policies On Agriculture," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271356, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. de Barros, José Roberto Mendonça & Pastore, Affonso Celso, 1976. "Absorção de mão-de-obra e os efeitos distributivos do progresso tecnológico na agricultura," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 30(3), July.
    8. Yumei Liu & Wuyang Hu & Simon Jetté-Nantel & Zhihong Tian, 2014. "The Influence of Labor Price Change on Agricultural Machinery Usage in Chinese Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 219-243, June.
    9. Pellegrina, Heitor S., 2022. "Trade, productivity, and the spatial organization of agriculture: Evidence from Brazil," Journal of Development Economics, Elsevier, vol. 156(C).

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