A Novel Decomposition Framework for Agricultural Growth Accounting: A Global Supply Chain Perspective

In this article, we delve into the traditionally opaque total factor productivity (TFP) “black box” by dissecting it into its constituent elements—technology and efficiency—based on input–output variables from a global supply chain vantage point. Utilizing growth accounting methods, the article seeks to discern the variety of routes through which technology (frontier movement) and efficiency (catch‐up effects) propagate their effects on TFP. Our primary objective is to identify the most potent mechanism for fostering productivity enhancement, a task that previously eluded systematic examination. The methodology involves creating an empirical approximation of the agricultural production frontier from a selection of national data. Bounded‐adjusted linear programming techniques are subsequently employed to disentangle the observed TFP growth within the agricultural sector of each country into its technology and efficiency facets. It is important to note that this study also integrates resource and environmental footprints as additional input–output variables, quantified via the multi‐region input–output (MRIO) model. The analysis, spanning from 2000 to 2016, reveals that the most advanced nations demonstrate the most vigorous growth in agricultural productivity, with a global upward trend in agricultural productivity over the sampled years.