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Brazil's Rising Agricultural Productivity and World Competitiveness

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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
    DOI: 10.22004/ag.econ.49317
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    References listed on IDEAS

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    1. Holger Matthey & Jacinto F. Fabiosa & Frank H. Fuller, 2004. "Brazil: The Future of Modern Agriculture?," Center for Agricultural and Rural Development (CARD) Publications 04-mbp6, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Graham, Douglas H & Gauthier, Howard & de Barros, Jose Roberto Mendonca, 1987. "Thirty Years of Agricultural Growth in Brazil: Crop Performance, Regional Profile, and Recent Policy Review," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 1-34, October.
    3. Holger Matthey & Jacinto F. Fabiosa & Frank H. Fuller, 2004. "Brazil: The Future of Modern Agriculture?," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications (archive only) 04-mbp6, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. 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.
    5. 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.
    6. Diewert, W E, 1992. "The Measurement of Productivity," Bulletin of Economic Research, Wiley Blackwell, vol. 44(3), pages 163-198, July.
    7. Willam Greene, 2005. "Fixed and Random Effects in Stochastic Frontier Models," Journal of Productivity Analysis, Springer, vol. 23(1), pages 7-32, January.
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    Cited by:

    1. Carlos Ludena, 2010. "Agricultural Productivity Growth, Efficiency Change and Technical Progress in Latin America and the Caribbean," Research Department Publications 4675, Inter-American Development Bank, Research Department.
    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.

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