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Explaining Agricultural Productivity Levels and Growth: An International Perspective

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Author Info
Derek D. Headey
D.S. Prasada Rao ()
Mohammad Alauddin () (CEPA - School of Economics, The University of Queensland)

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Abstract

With persistent population growth, a dwindling supply of arable land per capita, and the relatively high income elasticity of demand for food in developing countries, there is a growing need for food supply increases to originate from growth in productivity rather than expansions in inputs. In this paper the authors construct levels of total factor productivity in agriculture for 111 countries covering the years 1970 to 2000. Employing this data in panel and cross-sectional regressions, the authors seek to explain levels and trends in total factor productivity (TFP) in world agriculture, examining the relative roles of environmental and geographical factors, human capital, macroeconomic factors, technological processes resulting from globalization and the Green Revolution, and institutional factors such as measures of land inequality and proxies for urban biases in public and private expenditure. The authors conclude that, in addition to standard explanations of productivity improvements such as human capital, openness and environmental factors, both urban biases and inequality have been major impediments to successful rural development.

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Paper provided by School of Economics, University of Queensland, Australia in its series CEPA Working Papers Series with number WP022005.

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Date of creation: Jun 2004
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Handle: RePEc:qld:uqcepa:18

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Vernon W. Ruttan, 2002. "Productivity Growth in World Agriculture: Sources and Constraints," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 161-184, Fall. [Downloadable!] (restricted)
  2. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, 04. [Downloadable!] (restricted)
  3. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank. [Downloadable!]
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  5. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December. [Downloadable!] (restricted)
  6. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
  7. James Murdoch & Todd Sandler, 2002. "Civil Wars And Economic Growth: A Regional Comparison," Defence and Peace Economics, Taylor and Francis Journals, vol. 13(6), pages 451-464, January. [Downloadable!] (restricted)
  8. Diewert, Erwin, 2007. "Index Numbers," UBC Departmental Archives diewert-07-01-03-08-17-23, UBC Department of Economics, revised 31 Jan 2007. [Downloadable!]
  9. Bhalla, Surjit S & Roy, Prannoy L, 1988. "Mis-specification in Farm Productivity Analysis: The Role of Land Quality," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 55-73, March. [Downloadable!] (restricted)
  10. Lau, Lawrence J. & Yotopoulos, Pan A., 1989. "The meta-production function approach to technological change in world agriculture," Journal of Development Economics, Elsevier, vol. 31(2), pages 241-269, October. [Downloadable!] (restricted)
  11. Alauddin, Mohammad, 2004. "Environmentalizing economic development: a South Asian perspective," Ecological Economics, Elsevier, vol. 51(3-4), pages 251-270, December. [Downloadable!] (restricted)
  12. Alston, Julian M. & Pardey, Philip G. & Taylor, Michael J., 2001. "Agricultural science policy," Food policy statements 32, International Food Policy Research Institute (IFPRI). [Downloadable!]
  13. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May. [Downloadable!] (restricted)
  14. Paul, Catherine J. Morrison, 2000. "Productivity And Efficiency In The U.S. Food System, Or, Might Cost Factors Support Increasing Mergers And Concentration?," Working Papers 11983, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
  15. Ruttan, Vernon W., 2002. "Productivity Growth In World Agriculture: Sources And Constraints," Staff Papers 14176, University of Minnesota, Department of Applied Economics. [Downloadable!]
  16. Tim Coelli & Sergio Perelman, 2000. "Efficiency measurement, multiple-output technologiess and distance functions : with application to European Railways," CREPP Working Papers 9605, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège. [Downloadable!]
  17. Lilyan E. Fulginiti & Richard K. Perrin, 2005. "LDC Agriculture: Non-parametric Malmquist productivity indexes," Development and Comp Systems 0502025, EconWPA. [Downloadable!]
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  18. van Ark, Bart, 2002. "Measuring the New Economy: An International Comparative Perspective," Review of Income and Wealth, Blackwell Publishing, vol. 48(1), pages 1-14, March. [Downloadable!] (restricted)
  19. 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. [Downloadable!] (restricted)
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  1. Derek D. Headey & Dirk Bezemer, 2006. "Something of a Paradox: The Curious Neglect of Agriculture in Development," CEPA Working Papers Series WP012006, School of Economics, University of Queensland, Australia. [Downloadable!]
  2. Sipilainen, T. & Kuosmanen, T. & Kumbhakar, S.C., 2008. "Measuring productivity differentials – An application to milk production in Nordic countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44277, European Association of Agricultural Economists. [Downloadable!]
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