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Productivity Growth and Convergence in U.S. Agriculture: New Cointegration Panel Data Results

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Author Info
Yucan Liu
C. Richard Shumway
Robert Rosenman
V. Eldon Ball ()
Abstract

Dynamic effects of health and inter-state and inter-industry knowledge spillovers, total factor productivity (TFP) growth and convergence in U.S. agriculture are examined using recently developed procedures for panel data and a growth accounting model. Strong evidence is found to support the hypothesis that TFP converges to a steady-state. Health care supply in rural areas and research spillovers from other states and from nonagricultural sectors are found to have significant impacts on the productivity growth rate both in the short-run and long-run. These results suggest richer opportunities for policymakers to enhance productivity growth.

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File URL: http://www.ses.wsu.edu/PDFFiles/WorkingPapers/Shumway/TFP_20070920complete.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2008-4.

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Length: 36 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:wsu:wpaper:shumway-2

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Related research
Keywords: convergence; growth; pooled mean group estimator; total factor productivity;

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Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

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  2. Quah, Danny, 1993. "Galton's Fallacy and Tests of the Convergence Hypothesis," CEPR Discussion Papers 820, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Michael K. Fung, 2005. "Are Knowledge Spillovers Driving the Convergence of Productivity among Firms?," Economica, London School of Economics and Political Science, vol. 72(286), pages 287-305, 05. [Downloadable!] (restricted)
  4. Nair-Reichert, Usha & Weinhold, Diana, 2001. " Causality Tests for Cross-Country Panels: A New Look at FDI and Economic Growth in Developing Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(2), pages 153-71, May. [Downloadable!] (restricted)
  5. Kaddour Hadri, 1999. "Testing For Stationarity In Heterogeneous Panel Data," Research Papers 1999_04, University of Liverpool Management School.
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  6. Pedroni, Peter, 1999. " Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-70, Special I. [Downloadable!] (restricted)
  7. McCunn, Alan & Huffman, Wallace E, 2000. " Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 370-88, May. [Downloadable!] (restricted)
  8. Jet Yee & Mary Clare Ahearn, 2005. "Government policies and farm size: does the size concept matter?," Applied Economics, Taylor and Francis Journals, vol. 37(19), pages 2231-2238, October. [Downloadable!] (restricted)
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  10. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December. [Downloadable!] (restricted)
  11. Martin, Will & Mitra, Devashish, 1999. "Productivity growth and convergence in agriculture and manufacturing," Policy Research Working Paper Series 2171, The World Bank. [Downloadable!]
  12. Colin Thirtle & Lin Lin Lin & Jim Holding & Lindie Jenkins & Jenifer Piesse, 2004. "Explaining the Decline in UK Agricultural Productivity Growth," Journal of Agricultural Economics, Blackwell Publishing, vol. 55(2), pages 343-366. [Downloadable!] (restricted)
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