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Borders and Barriers: Spatial Analysis of Agricultural Output Spillovers at the Grid Cell Level

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  • Motamed, Mesbah J.
  • Florax, Raymond J.G.M.
  • Masters, William A.

Abstract

Much of the world's agricultural productivity growth over the past fifty years has been attributed to the international spillover of benefits from research and develop- ment (Alston, 2002). Because the impact of these spillovers often varies with distance, geography, and climate, attention has increasingly focused on measuring their spa- tial dimensions Evenson (1989). In this paper, spatial spillovers are examined in the context of country borders. Using high-resolution worldwide grid cell data covering yields for 11 major crops, we test whether spatial dependencies in agricultural yields fall in the presence of country borders, controlling for geography and climate as well as country-specific effects. Two different complementary analyses show that country borders significantly and sizeably diminish the transmission of spatial spillovers be- tween locations. The results thus point to a clear \border effect" on an important determinant of agricultural productivity.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 124790.

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Date of creation: 2012
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Handle: RePEc:ags:aaea12:124790

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Keywords: agricultural productivity; spillovers; border effects; International Relations/Trade; Productivity Analysis; Research Methods/ Statistical Methods;

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  1. Kawagoe, Toshihiko & Hayami, Yujiro & Ruttan, Vernon W., 1985. "The intercountry agricultural production function and productivity differences among countries," Journal of Development Economics, Elsevier, vol. 19(1-2), pages 113-132.
  2. Charles Engel & John H. Rogers, 1995. "How wide is the border?," Research Working Paper 95-09, Federal Reserve Bank of Kansas City.
  3. Margaret S. McMillan & William A. Masters, 2000. "Climate and scale in economic growth," CSAE Working Paper Series 2000-13, Centre for the Study of African Economies, University of Oxford.
  4. Mundlak, Yair, 2001. "Production and supply," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 1, pages 3-85 Elsevier.
  5. Carolyn L. Evans, 2003. "The Economic Significance of National Border Effects," American Economic Review, American Economic Association, vol. 93(4), pages 1291-1312, September.
  6. Fulginiti, Lilyan E. & Perrin, Richard K., 1992. "Prices and Productivity in Agriculture," Staff General Research Papers 543, Iowa State University, Department of Economics.
  7. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
  8. You, Liangzhi & Wood, Stanley, 2006. "An entropy approach to spatial disaggregation of agricultural production," Agricultural Systems, Elsevier, vol. 90(1-3), pages 329-347, October.
  9. 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.
  10. Dietrich Vollrath, 2007. "Land Distribution and International Agricultural Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 202-216.
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