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Labor Productivity Growth And Convergence In The Kansas Farm Sector: A Tripartite Decomposition Using The Dea Approach

  • Mugera, Amin W.
  • Langemeier, Michael R.

The objective of this paper is to analyze sources of labor productivity growth in the Kansas farm sector over the period 1993-2006 for a sample of 668 farms. The nonparametric production frontier method is used to decompose labor productivity growth into three components: (1) technological catch-up, (2) technological change, and (3) capital deepening. Kernel estimation methods are used to analyze the evolution of the entire distribution of labor productivity in the sample period. We find that labor productivity is primarily driven by capital deepening. On average, capital deepening is the main source of convergence in productivity and technical change is a source of divergence. We find little evidence of technological catch-up. The impact of the three components of labor productivity varies by farm size.

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File URL: http://purl.umn.edu/6069
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6069.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6069
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  1. Kerstin Enflo & Per Hjertstrand, 2009. "Relative Sources of European Regional Productivity Convergence: A Bootstrap Frontier Approach," Regional Studies, Taylor & Francis Journals, vol. 43(5), pages 643-659.
  2. Alan McCunn & Wallace E. Huffman, 2000. "Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 370-388.
  3. Daniel J. Henderson & Valentin Zelenyuk, 2007. "Testing for (Efficiency) Catching-up," Southern Economic Journal, Southern Economic Association, vol. 73(4), pages 1003–1019, April.
  4. SIMAR, Léopold & WILSON, Paul, 1995. "Sensitivity Analysis to Efficiency Scores : How to Bootstrap in Nonparametric Frontier Models," CORE Discussion Papers 1995043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Los, Bart & Timmer, Marcel P., 2005. "The 'appropriate technology' explanation of productivity growth differentials: An empirical approach," Journal of Development Economics, Elsevier, vol. 77(2), pages 517-531, August.
  6. repec:dgr:rugggd:200361 is not listed on IDEAS
  7. Diewert, Erwin, 2007. "Index Numbers," Economics working papers diewert-07-01-03-08-17-23, Vancouver School of Economics, revised 31 Jan 2007.
  8. Fuglie, Keith O. & MacDonald, James C. & Ball, V. Eldon, 2007. "Productivity Growth in U.S. Agriculture," Economic Brief 6382, United States Department of Agriculture, Economic Research Service.
  9. V. Eldon Ball & Jean-Christophe Bureau & Richard Nehring & Agapi Somwaru, 1997. "Agricultural Productivity Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1045-1063.
  10. V. Eldon Ball & Charles Hallahan & Richard Nehring, 2004. "Convergence of Productivity: An Analysis of the Catch-up Hypothesis within a Panel of States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1315-1321.
  11. Henderson, Daniel J. & Tochkov, Kiril & Badunenko, Oleg, 2007. "A drive up the capital coast? Contributions to post-reform growth across Chinese provinces," Journal of Macroeconomics, Elsevier, vol. 29(3), pages 569-594, September.
  12. Shunsuke Managi & David Karemera, 2004. "Input and output biased technological change in US agriculture," Applied Economics Letters, Taylor & Francis Journals, vol. 11(5), pages 283-286.
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