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How Endowments, Accumulations, and Choice Determine the Geography of Agricultural Productivity in Ecuador


  • Donald F. Larson
  • Mauricio León


Spatial disparity in incomes and productivity is apparent across and within countries. Most studies of the determinants of such differences focus on cross-country comparisons or location choice among firms. Less studied are the large differences in agricultural productivity within countries related to concentrations of rural poverty. For policy, understanding the determinants of this geography of agricultural productivity is important, because strategies to reduce poverty often feature components designed to boost regional agricultural incomes. Census and endowment data for Ecuador are used to estimate a model of endogenous technology choice to explain large regional differences in agricultural output and factor productivity. A composite-error estimation technique is used to separate systemic determinants from idiosyncratic differences. Simulations are employed to explore policy avenues. The findings suggest a differentiation between the types of policies that promote growth in agriculture generally and those that are more likely to assist the rural poor. Copyright 2006, Oxford University Press.

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  • Donald F. Larson & Mauricio León, 2006. "How Endowments, Accumulations, and Choice Determine the Geography of Agricultural Productivity in Ecuador," World Bank Economic Review, World Bank Group, vol. 20(3), pages 449-471.
  • Handle: RePEc:oup:wbecrv:v:20:y:2006:i:3:p:449-471

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    References listed on IDEAS

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    Cited by:

    1. Donald F. Larson & Keijiro Otsuka & Tomoya Matsumoto & Talip Kilic, 2014. "Should African rural development strategies depend on smallholder farms? An exploration of the inverse-productivity hypothesis," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 355-367, May.
    2. Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ,Jason Daniel, 2015. "Agricultural technology choice and transport," Policy Research Working Paper Series 7272, The World Bank.
    3. Larson,Donald F. & Muraoka,Rie & Otsuka,Keijiro, 2016. "On the central role of small farms in African rural development strategies," Policy Research Working Paper Series 7710, The World Bank.
    4. De Miguel, Carlos J. & Ludeña, Carlos & Schuschny, Andrés Ricardo & Durán Lima, José Elías, 2009. "Trade and sustainable development: spatial distribution of trade policies impacts on agriculture," Medio Ambiente y Desarrollo 138, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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