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Factor Prices and Technical Change in Agricultural Development: The United States and Japan, 1880-1960


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  • Hayami, Yujiro
  • Ruttan, V W


The purpose of this paper is to explore the hypothesis that a common basis for rapid growth in agricultural output and productivity lies in a remarkable adaptation of agricultural technology to the sharply contrasting factor proportions in the two countries. It is hypothesized that an important aspect of this adaptation was the ability to generate a continuous sequence of induced innovations in agricultural technology biased towards saving the limiting factors. In Japan these innovations were primarily biological and chemical. In the United States they were primarily mechanical.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 78 (1970)
Issue (Month): 5 (Sept.-Oct.)
Pages: 1115-41

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Handle: RePEc:ucp:jpolec:v:78:y:1970:i:5:p:1115-41

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Cited by:
  1. Liu, Yucan & Shumway, C. Richard, 2009. "Induced innovation and marginal cost of new technology," Economics Letters, Elsevier, vol. 105(1), pages 106-109, October.
  2. Aniel A. Altamirano Ogarrio & Mario M. Carrillo Huerta & José A. Cerón Vargas, 2005. "Sectorial Economic Growth and Employment in Mexico, 1996-2001," DEGIT Conference Papers c010_033, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. Yucan Liu & C. Richard Shumway, 2009. "Induced Innovation in U.S. Agriculture: Time-series, Direct Econometric, and Nonparametric Tests," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 224-236.
  4. Liu, Qinghua & Shumway, C. Richard, 2003. "Induced Innovation Tests On Western American Agriculture: A Cointegration Analysis," 2003 Annual meeting, July 27-30, Montreal, Canada 22237, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Ruttan, Vernon W., 1996. "Sources Of Technical Change: Induced Innovation, Evolutionary Theory And Path Dependence," Bulletins 12974, University of Minnesota, Economic Development Center.
  6. Ruttan, Vernon W., 2008. "General Purpose Technology, Revolutionary Technology, and Technological Maturity," Staff Papers 6206, University of Minnesota, Department of Applied Economics.
  7. Tai-Yoo Kim & Mi-Ae Jung & Eungdo Kim & Eunnyeong Heo, 2011. "The Faster-Accelerating Growth of the Knowledge-Based Society," TEMEP Discussion Papers 201181, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2011.
  8. Benjamin Mandel, 2011. "The dynamics and differentiation of Latin American metal exports," Staff Reports 508, Federal Reserve Bank of New York.
  9. Morris, Michael L. & Smale, Melinda, 1997. "Organization and Performance of National Maize Seed Industries: A New Institutionalist Perspective," Economics Working Papers 7698, CIMMYT: International Maize and Wheat Improvement Center.
  10. Alberto Behar, 2013. "The Endogenous Skill Bias of Technical Change and Inequality in Developing Countries," IMF Working Papers 13/50, International Monetary Fund.
  11. Napasintuwong, Orachos & Emerson, Robert D., 2005. "Farm Mechanization and the Farm Labor Market: A Socioeconomic Model of Induced Innovation," Working Papers 15652, University of Florida, International Agricultural Trade and Policy Center.
  12. Fukunishi, Takahiro & Yamagata, Tatsufumi, 2013. "Slow and steady wins the race : how the garment industry leads industrialization in low-income countries," IDE Discussion Papers 412, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  13. Benson, Aaron & Shumway, C. Richard, 2005. "Induced Innovation or a Paradox of Environmental Regulation?," 2005 Annual meeting, July 24-27, Providence, RI 19450, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. Roberto Esposti & Pierpaolo Pierani, 2008. "Price-induced technical progress in Italian agriculture," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 89(4), pages 5-28.
  15. Yeung, Patrick & Roe, Terry L., 1971. "Induced Innovation: A Ces-Type Meta-Production Function," Staff Papers 13622, University of Minnesota, Department of Applied Economics.
  16. Mundlak, Yair, 2003. "Economic Growth: Lessons From Two Centuries Of American Agriculture," Discussion Papers 14986, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  17. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy.
  18. Napasintuwong, Orachos & Emerson, Robert D., 2006. "Immigrant Workers and Technological Change in U.S. Agriculture: A Profit Maximization Approach of Induced Innovation," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25505, International Association of Agricultural Economists.


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