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Production Structure and Decomposition of Biased Technical Change: An Example from Canadian Agriculture


  • Giannis Karagiannis
  • W. Hartley Furtan


During the 1935 to 1985 period, empirical evidence from Canadian agriculture suggests that both Hicksian bias and the scale effect determined the direction of biased technical change. The overall bias in technical change was found to be machinery-using, land-saving, and fertilizer-using. In general, however, the Hicksian bias dominated the scale effect; and hence, it determined the direction of bias in technical change. Thus, it can be argued that technical change in Canadian agriculture is mainly induced by changes in relative factor prices. However, after 1975, the scale effect of biased technical change for all inputs became relatively stronger.

Suggested Citation

  • Giannis Karagiannis & W. Hartley Furtan, 1993. "Production Structure and Decomposition of Biased Technical Change: An Example from Canadian Agriculture," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(1), pages 21-37.
  • Handle: RePEc:oup:revage:v:15:y:1993:i:1:p:21-37.

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    Cited by:

    1. Krasachat, W., 2000. "Production Structure and Technical Change in Thai Agriculture, 1972-1994," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123688, Australian Agricultural and Resource Economics Society.
    2. Esposti, Roberto & Pierani, Pierpaolo, 2008. "Price-induced technical progress in Italian agriculture," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 89(4).
    3. Pardey, Philip G. & Alston, Julian M. & Ruttan, Vernon W., 2010. "The Economics of Innovation and Technical Change in Agriculture," Handbook of the Economics of Innovation, Elsevier.
    4. Mupondwa, Edmund K., 2005. "Induced Technological Change in Canadian Agriculture Field Crops - Canola and Wheat: 1926-2003," 2005 Annual meeting, July 24-27, Providence, RI 19333, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-17, July.

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