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Measuring factor substitution and technological change in the Tunisian agricultural sector, 1971 - 2000

  • Lachaal, Lassaad
  • Chebil, Ali
  • Dhehibi, Boubaker

The production structure of Tunisian agriculture over the last three decades is investigated using a translog variable cost function. Standard results of neoclassical duality theory are used to obtain measures of elasticities of substitution between inputs, price elasticities of factor demands and the rate of growth and bias of technological progress. Empirical results obtained from the joint estimation of parameters of the cost and share equations indicate an increasing trend in the degree of substitutability between labour and intermediate inputs. The own-price elasticities of labour and intermediate inputs are inelastic. While the labour price elasticity of demand has increased over time, the intermediate input price elasticity of demand has declined. Finally, technological progress occurred at an impressive and sustained annual growth rate of 3.8 percent.

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Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 06 (2005)
Issue (Month): 2 (August)

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Handle: RePEc:ags:aergaa:44096
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  1. Fulginiti, Lilyan E. & Perrin, Richard K., 1997. "LDC agriculture: Nonparametric Malmquist productivity indexes," Journal of Development Economics, Elsevier, vol. 53(2), pages 373-390, August.
  2. Hailu, Atakelty & Veeman, Terrence S., 2000. "Environmentally Sensitive Productivity Analysis of the Canadian Pulp and Paper Industry, 1959-1994: An Input Distance Function Approach," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 251-274, November.
  3. Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
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  5. Lachaal, Lassaad, 1994. "Subsidies, Endogenous Technical Efficiency And The Measurement Of Productivity Growth," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(01), July.
  6. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-76, December.
  7. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
  8. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
  9. Nin, Alejandro & Arndt, Channing & Preckel, Paul V., 2003. "Is agricultural productivity in developing countries really shrinking? New evidence using a modified nonparametric approach," Journal of Development Economics, Elsevier, vol. 71(2), pages 395-415, August.
  10. De Borger, Bruno L, 1984. "Cost and Productivity in Regional Bus Transportation: The Belgian Case," Journal of Industrial Economics, Wiley Blackwell, vol. 33(1), pages 37-54, September.
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