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Induced Technological Change in Canadian Agriculture Field Crops - Canola and Wheat: 1926-2003

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  • Mupondwa, Edmund K.

Abstract

A tractable two-stage constant elasticity of substitution (CES) production function is applied to disaggregated western Canadian wheat and canola data for 1926-2003 to investigate the induced innovation hypothesis. Time series properties of the data are analyzed using cointegration and error correction to assess causality in differentiating between technological change and factor substitution. The results provide empirical support for the hypothesis with respect to prairie wheat and canola production.

Suggested Citation

  • 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).
  • Handle: RePEc:ags:aaea05:19333
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    File URL: http://purl.umn.edu/19333
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    References listed on IDEAS

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    1. 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 964-976, December.
    2. Clark, J. Stephen & Klein, Kurt K. & Kerr, William A., 2003. "Fundamental And Induced Biases In Technological Change In Central Canadian Agriculture," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25874, International Association of Agricultural Economists.
    3. 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.
    4. Kaneda, Hiromitzu, 1982. "Specification of production functions for analyzing technical change and factor inputs in agricultural development," Journal of Development Economics, Elsevier, vol. 11(1), pages 97-108, August.
    5. Olmstead, Alan L & Rhode, Paul, 1993. "Induced Innovation in American Agriculture: A Reconsideration," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 100-118, February.
    6. Kawagoe, Toshihiko & Otsuka, Keijiro & Hayami, Yujiro, 1986. "Induced Bias of Technical Change in Agriculture: The United States and Japan, 1880-1980," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 523-544, June.
    7. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    8. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    9. Thirtle, Colin G, 1985. "The Microeconomic Approach to Induced Innovation: A Reformulation of the Hayami and Ruttan Model," The Manchester School of Economic & Social Studies, University of Manchester, vol. 53(3), pages 263-279, September.
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