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Agricultural Productivity and Structural Transformation. Evidence from Brazil

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  • Paula Bustos
  • Bruno Caprettini
  • Jacopo Ponticelli

Abstract

We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil, which had heterogeneous effects on agricultural productivity across areas with different soil and weather characteristics. We find that technical change in soy production was strongly labor saving and lead to industrial growth, as predicted by the model.

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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 736.

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Date of creation: Aug 2013
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Handle: RePEc:bge:wpaper:736

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Keywords: agricultural productivity; structural transformation; industrial development; labor saving technical change; genetically engineered soy;

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  17. repec:fth:stanho:e-92-3 is not listed on IDEAS
  18. Pablo D. Fajgelbaum, 2011. "Income Distribution, Product Quality and International Trade," 2011 Meeting Papers 415, Society for Economic Dynamics.
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