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Brazil's Rising Agricultural Productivity and World Competitiveness

Author

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  • Rada, Nicholas E.
  • Buccola, Steven T.
  • Fuglie, Keith O.

Abstract

Brazil now is the largest coffee, sugar, and fruit juice producer, second-largest soybean and beef producer, and third-largest corn and broiler producer. It has overtaken the U.S. in poultry exports, nearly matches the U.S. in soybean exports, and dominates global trade in frozen orange juice. To test and better understand these advances, we draw on decennial farm censuses to examine technical change and efficiency in Brazilian agriculture. Our approach is to estimate a stochastic, multi-product, output distance frontier, using a translog functional form and data disaggregated to the micro-region (sub-state) level. Using two consecutive decennial farm censuses, we combine state-level Fisher productivity-change indexes with state-level translog distance function estimates of technical efficiency change to impute state-level technical shifts. We find, leading up to the soon-to-be-released 2006 agricultural census, that Brazil’s multi-factor productivity growth rate between 1985 and 1996 was 20.2%. Mean state-level technical efficiency was 91.2%, which implies the production frontier expanded 22.2% over the reference time period.

Suggested Citation

  • Rada, Nicholas E. & Buccola, Steven T. & Fuglie, Keith O., 2009. "Brazil's Rising Agricultural Productivity and World Competitiveness," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49317, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49317
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    File URL: http://purl.umn.edu/49317
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    References listed on IDEAS

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    1. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    2. Helfand, Steven M. & Levine, Edward S., 2004. "Farm size and the determinants of productive efficiency in the Brazilian Center-West," Agricultural Economics, Blackwell, vol. 31(2-3), pages 241-249, December.
    3. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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    Cited by:

    1. Carlos E. Ludeña, 2010. "Agricultural Productivity Growth, Efficiency Change and Technical Progress in Latin America and the Caribbean," IDB Publications (Working Papers) 1806, Inter-American Development Bank.
    2. Abolhassani, Leili & Eghbali, Fatemeh & Shahnoushi, Naser, 2015. "The Impacts of Governance on Agricultural Efficiency," 2015 Conference, August 9-14, 2015, Milan, Italy 211620, International Association of Agricultural Economists.

    More about this item

    Keywords

    Brazil; Shephard distance function; stochastic frontier; technical change; technical efficiency; International Development; Production Economics; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;

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