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Total Factor Productivity in Brazil’s and Argentina’s Agriculture: A Comparative Analysis

Author

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  • Mendali, Rebati
  • Ames, Glenn C.W.
  • Gunter, Lewell F.

Abstract

We measure Malmquist index of total factor productivity (TFP) changes in the agricultural sector of Brazil and Argentina during 1971-2002. The TFP change index is further decomposed into efficiency change and technical change. We then compare the cumulative TFP growth and its components in both countries. Results show that agricultural TFP change as well as efficiency and technical change accelerated in Brazilian agriculture, where as Argentinean agriculture experienced a negative trend in TFP growth over the sample period. Efficiency change in Argentina’s agriculture was found to be stagnant over time. The increasing productivity in Brazil is due to strong policy reform in 1980s. Argentina’s imbalanced economy, including biased reforms explains the negative TFP growth and technical regress during this period.

Suggested Citation

  • Mendali, Rebati & Ames, Glenn C.W. & Gunter, Lewell F., 2013. "Total Factor Productivity in Brazil’s and Argentina’s Agriculture: A Comparative Analysis," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143036, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea13:143036
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    File URL: http://purl.umn.edu/143036
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    References listed on IDEAS

    as
    1. Clemente, Jesus & Montanes, Antonio & Reyes, Marcelo, 1998. "Testing for a unit root in variables with a double change in the mean," Economics Letters, Elsevier, vol. 59(2), pages 175-182, May.
    2. Alejandro Nin-Pratt & Bingxin Yu & Shenggen Fan, 2010. "Comparisons of agricultural productivity growth in China and India," Journal of Productivity Analysis, Springer, vol. 33(3), pages 209-223, June.
    3. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
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    More about this item

    Keywords

    Total Factor Productivity; Data Envelopment Analysis; Agriculture in Brazil and Argentina; Policy Reform; Agricultural and Food Policy; International Development; Productivity Analysis; C61; O47; O57; Q16; Q18;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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