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Test of Convergence in Agricultural Factor Productivity: A Semiparametric Approach

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  • Paudel, Krishna P.
  • Pandit, Mahesh
  • Poudel, Biswo N.

Abstract

We tested for club convergence in U.S. agricultural total factory productivity using a sigma convergence test. We used the same club of states as used by McCunn and Huffman as well as different states within 10 clubs identified by the cluster analysis. Results showed convergence was evident only in a few club groups. Clusters group identified using a statistical method identified only converging clubs. Variables affecting total factor productivity among states were identified using parametric, semiparametric and nonparametric methods. Semiparametric and nonparametric methods gave a better fit than a parametric method as indicated by the specification test. Our results indicated that health care expenditure, public research and extension investment, and private expenditure are important variables impacting total factor productivity differences across states.

Suggested Citation

  • Paudel, Krishna P. & Pandit, Mahesh & Poudel, Biswo N., 2011. "Test of Convergence in Agricultural Factor Productivity: A Semiparametric Approach," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 104025, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:104025
    DOI: 10.22004/ag.econ.104025
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    References listed on IDEAS

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    1. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    2. Nguyen Van, Phu & Azomahou, Theophile, 2007. "Nonlinearities and heterogeneity in environmental quality: An empirical analysis of deforestation," Journal of Development Economics, Elsevier, vol. 84(1), pages 291-309, September.
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