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Technological Backwardness in Agriculture: Is It due to Lack of R&D Expenditures, Human Capital and Openness to International Trade?

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  • Rodolfo Cermeño
  • Sirenia Várquez

Abstract

In this paper we investigate the relationship between the agricultural technological level and R&D expenditures, human capital and openness to international trade using cross country information for a sample of 104 countries and various sub samples over the period 1961-1991. We first model the unobservable technological level as a dynamic stochastic process in the context of a general translog production function, and then we relate the implied technological levels to the aforementioned variables. For comparison, alternative specifications of the production and its associated technological process are also considered. We find that the proposed model outperforms all of the alternative specifications. The results suggest that the technological gap between developed and less developed countries in agriculture has increased considerably over this period of time and that, overall, the technological levels are directly related to R&D expenditures, human capital and openness, although this relationship is not robust across the different groups of countries considered.

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Bibliographic Info

Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c010_014.

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Length: 30 pages JEL Classification: C23, Q16
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:deg:conpap:c010_014

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Keywords: Agricultural production function; Agricultural technology; Dynamic error components models; Non-linear models; R&D expenditures; Human capital; Openness;

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  1. Stephen M. Miller & Mukti P. Upadhyay, 2002. "Total Factor Productivity, Human Capital and Outward Orientation: Differences by Stage of Ddevelopment and Geographic Regions," Working papers 2002-33, University of Connecticut, Department of Economics.
  2. Comin, D. & Hobijn, B., 2004. "Cross-country technology adoption: making the theories face the facts," Journal of Monetary Economics, Elsevier, vol. 51(1), pages 39-83, January.
  3. Ruttan, Vernon W., 2002. "Productivity Growth In World Agriculture: Sources And Constraints," Staff Papers 14176, University of Minnesota, Department of Applied Economics.
  4. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
  5. Jorgenson, Dale W & Fraumeni, Barbara M, 1992. " Investment in Education and U.S. Economic Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages S51-70, Supplemen.
  6. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
  7. Milton Friedman & Simon Kuznets, 1954. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1.
  8. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1987. "Farmer Education and Farm Efficiency: Reply," Economic Development and Cultural Change, University of Chicago Press, vol. 35(3), pages 643-44, April.
  9. Mombert Hoppe, 2005. "Technology Transfer Through Trade," Working Papers 2005.19, Fondazione Eni Enrico Mattei.
  10. Kaneda, Hiromitzu, 1982. "Specification of production functions for analyzing technical change and factor inputs in agricultural development," Journal of Development Economics, Elsevier, vol. 11(1), pages 97-108, August.
  11. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
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