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Technology Adoption in Agriculture and Convergence across Economies

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  • Thorsten Wichmann

    () (Berlecon Research)

Abstract

In this paper I present a simple model of technology adoption in agriculture in an exogenous as well as in an endogenous adoption framework. The model implies that an optimal technological gap between technological leaders and followers will persist. Full convergence or catch-up will never take place under normal circumstances if new technology has to be adapted to local conditions. Since this is often the case for agricultural technologies, the model implications are tested empirically by (i) adding a measure for the size of the agricultural sector to cross- country growth regressions and by (ii) discussing convergence in sets of countries with similar climate as a proxy for similar agricultural conditions. Both tests confirm the model predictions.

Suggested Citation

  • Thorsten Wichmann, 1996. "Technology Adoption in Agriculture and Convergence across Economies," Berlecon Research Papers 0002, Berlecon Research.
  • Handle: RePEc:ber:bertw1:0002
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    File URL: http://www.berlecon.de/tw/agricon.pdf
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    References listed on IDEAS

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    7. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    8. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
    9. Steven N. Durlauf & Paul A. Johnson, 1992. "Local Versus Global Convergence Across National Economies," NBER Working Papers 3996, National Bureau of Economic Research, Inc.
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    12. Judd, M Ann & Boyce, James K & Evenson, Robert E, 1986. "Investing in Agricultural Supply: The Determinants of Agricultural Research and Extension Investment," Economic Development and Cultural Change, University of Chicago Press, vol. 35(1), pages 77-113, October.
    13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:

    1. Hunter Humphries & Stephen Knowles, 1998. "Does agriculture contribute to economic growth? Some empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 775-781.
    2. Paudel, Krishna P. & Sambidi, Pramod R. & Sulgham, Anil K., 2004. "A Theoretical Development And Empirical Test On The Convergence Of Agricultural Productivity In The Usa," 2004 Annual meeting, August 1-4, Denver, CO 20175, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    growth and development theory; convergence; technology adoption;

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