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Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity

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  • Mr. Rodrigo Garcia-Verdu
  • Alexis Meyer-Cirkel
  • Akira Sasahara
  • Hans Weisfeld

Abstract

This paper estimates agricultural total factor productivity (TFP) in 162 countries between 1991 and 2015 and aims to understand sources of cross-country variations in agricultural TFP levels and its growth rates. Two factors affecting agricultural TFP are analyzed in detail – imported intermediate inputs and climate. We first show that these two factors are independently important in explaining agricultural TFP – imported inputs raise agricultural TFP; and higher temperatures and rainfall shortages impede TFP growth, particularly in low-income countries (LICs). We also provide a new evidence that, within LICs, those with a higher import component of intermediate inputs seem to be more shielded from the negative impacts of weather shocks.

Suggested Citation

  • Mr. Rodrigo Garcia-Verdu & Alexis Meyer-Cirkel & Akira Sasahara & Hans Weisfeld, 2019. "Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity," IMF Working Papers 2019/026, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2019/026
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    3. Juan Antonio García-Cebro & Alejandro Quintela-Del-Río & Ramón Varela-Santamaría, 2023. "Welfare and sectoral productivity shifts in a small open economy with imported agricultural inputs: The case of Sub-Saharan Africa," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(3), pages 353-376, September.

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