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Induced Innovation in Canadian Agriculture

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  • Clark, J. Stephen
  • Cechura, Lukas
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    Abstract

    The study re-examines the induced innovation hypothesis from 1958-2006 in Canadian agriculture for two regions in Canada: Central Canada (Provinces of Ontario and Quebec) and Western Canada (Provinces of Alberta Saskatchewan and Manitoba). There is broadly consistent support for the induced innovations hypothesis for Canadian agriculture, especially for Western Canadian Agriculture. In addition, there is support for the notion the US as well as Canadian research expenditures are important to the explanation of input ratio movements in Canadian Agriculture in the long run. This could indicate the existence of spillover effects that run from US agricultural research to Canadian Agriculture.

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    File URL: http://purl.umn.edu/135783
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 131st Seminar, September 18-19, 2012, Prague, Czech Republic with number 135783.

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    Date of creation: 18 Sep 2012
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    Handle: RePEc:ags:eaa131:135783

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    Related research

    Keywords: Induced Innovation; factor substitution; spillover effects; non-stationarity; cointegration; Agribusiness; Agricultural and Food Policy;

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    1. M Pesaran & Yongcheol Shin, 2004. "Long-Run Structural Modelling," ESE Discussion Papers 44, Edinburgh School of Economics, University of Edinburgh.
    2. Thirtle, C. & Townsend, R. & Zyl, J. van, 1998. "Testing the induced innovation hypothesis: an error correction model of South African agriculture," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
    3. Yucan Liu & C. Richard Shumway, 2008. "Induced Innovation in U.S. Agriculture: Time-series, Direct Econometric, and Nonparametric Tests," Working Papers 2008-3, School of Economic Sciences, Washington State University.
    4. Olmstead, Alan L & Rhode, Paul, 1993. "Induced Innovation in American Agriculture: A Reconsideration," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 100-118, February.
    5. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
    6. Fernando S. Machado, 1995. "Testing The Induced Innovation Hypothesis Using Cointegration Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 349-360.
    7. Giannis Karagiannis & W. Hartley Furtan, 1990. "Induced Innovation in Canadian Agriculture: 1926–87," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(1), pages 1-21, 03.
    8. Thirtle, C. & Townsend, R. & van Zyl, J., 1998. "Testing the induced innovation hypothesis: an error correction model of South African agriculture," Agricultural Economics, Blackwell, vol. 19(1-2), pages 145-157, September.
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