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Agricultural Competitiveness: The Case of the United States and Major EU Countries

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  • Gopinath, Munismay
  • Arnade, Carlos
  • Shane, Mathew
  • Roe, Terry

Abstract

Growth in the agricultural GDP of four major European countries is compared with U.S. agricultural growth for the period 1974-1993. The agricultural sector's domestic terms of trade with the rest of the economy is taken into account along with economy-wide factor market adjustments. For all the four countries— Denmark, France, Germany, and the U.K.— the effects of declining real prices and changes in input levels on growth in agricultural GDP are relatively small on average. Total Factor Productivity (TFP) appears to be the major contributor to European agricultural GDP growth. TFP is the major source of growth in U.S. and EU agricultural GDP, but its rate of growth in the United States is lower than the European countries for the same period. The declining real prices for U.S. agriculture had a large effect on its GDP as compared with the EU. However, in the late 1980s and early 1990s, the effects of declining real prices and declining rates of growth in TFP on European agriculture were relatively large. In the longer run, the relative competitiveness of U.S. agriculture is largely dependent on its ability to sustain and increase growth in TFP.

Suggested Citation

  • Gopinath, Munismay & Arnade, Carlos & Shane, Mathew & Roe, Terry, 1996. "Agricultural Competitiveness: The Case of the United States and Major EU Countries," Staff Reports 278811, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278811
    DOI: 10.22004/ag.econ.278811
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    File URL: http://ageconsearch.umn.edu/record/278811/files/ers-report-672.pdf
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    References listed on IDEAS

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    1. Munisamy Gopinath & Terry Roe, 1997. "Sources of Sectoral Growth in an Economy Wide Context: The Case of U.S. Agriculture," Journal of Productivity Analysis, Springer, vol. 8(3), pages 293-310, August.
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    Cited by:

    1. Jahan, Nilufar & Smith, Perry & Rodriguez, Gil, 2002. "An analysis of the growth of the Australian dairy and meat processing industries," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125113, Australian Agricultural and Resource Economics Society.
    2. Roe, Terry L. & Gopinath, Munisamy, 1996. "World Trade Issues And Food Security," Working Papers 14425, University of Minnesota, Center for International Food and Agricultural Policy.
    3. Xinshen Diao & Terry Roe & Agapi Somwaru, 2001. "What is the Cause of Growth in Regional Trade: Trade Liberalisation or RTAs? The Case of Agriculture," The World Economy, Wiley Blackwell, vol. 24(1), pages 51-79, January.
    4. Bazen, Ernest F. & Roberts, Roland K. & Travis, John & Larson, James A., 2008. "Factors Affecting Hay Supply and Demand in Tennessee," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6889, Southern Agricultural Economics Association.
    5. Phillips, Jon C. & Peterson, H. Christopher, 2004. "Product Differentiation and Target Marketing by Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-11.
    6. Francisco J. Goerlich & Ernest Reig & Isidro Cantarino, 2016. "Delimitación y características de las áreas rurales en los municipios y las provincias españolas," Working Papers 1606, Department of Applied Economics II, Universidad de Valencia.
    7. Jahan, Nilufar & Smith, Perry & Rodriguez, Gil, 2003. "An analysis of the growth of the Australian dairy and meat processing sectors," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    8. Kirschke, D. & Weber, G., 2004. "Internationale Wettbewerbsfähigkeit und Optionen für die EU-Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    9. Mullen, John D. & Scobie, Grant M. & Crean, Jason, 2006. "Trends in Research, Productivity Growth and Competitiveness in Agriculture in New Zealand and Australia," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31965, New Zealand Agricultural and Resource Economics Society.

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