Technological Backwardness in Agriculture: Is It due to Lack of R&D Expenditures, Human Capital and Openness to International Trade?
AbstractIn 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 InfoPaper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c010_014.
Length: 30 pages JEL Classification: C23, Q16
Date of creation: Jun 2005
Date of revision:
Agricultural production function; Agricultural technology; Dynamic error components models; Non-linear models; R&D expenditures; Human capital; Openness;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-12-01 (Agricultural Economics)
- NEP-ALL-2006-12-01 (All new papers)
- NEP-DEV-2006-12-01 (Development)
- NEP-EFF-2006-12-01 (Efficiency & Productivity)
- NEP-HRM-2006-12-01 (Human Capital & Human Resource Management)
- NEP-INO-2006-12-01 (Innovation)
- NEP-INT-2006-12-01 (International Trade)
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