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A three-factor agricultural production function: The case of Canada

  • Cristina Echevarria

    (University of Saskatoon)

This paper estimates a constant returns to scale agricultural production function with just threeinputs: land, labour and capital -the basic factors of production. It uses the shares approach thatSolow used in 1957 and very disaggregated Canadian data. A constant returns to scale function ofthe three basic factors of production is a useful tool for macroeconomic, and growth anddevelopment studies. The main results of this paper are that, first, in Canada agriculture is lesslabour intensive than both services and industry, but capital intensity is similar in the threesectors. Second, the share of land in value added is estimated to be 16% Third, total factorproductivity growth in Canada has been roughly the same -0'3%- in agriculture and manufacturesover the period 1971-91.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1997-12.pdf
File Function: Fisrt version / Primera version, 1997
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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1997-12.

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Length: 2 pages
Date of creation: Apr 1997
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:1997-12
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  1. Costello, Donna M, 1993. "A Cross-Country, Cross-Industry Comparison of Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 207-22, April.
  2. Kiminori Matsuyama, 1991. "Agricultural Productivity, Comparative Advantage and Economic Growth," NBER Working Papers 3606, National Bureau of Economic Research, Inc.
  3. Stockman, Alan C., 1988. "Sectoral and national aggregate disturbances to industrial output in seven European countries," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 387-409.
  4. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity across Industries and Countries: Time Series Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 135-46, February.
  5. Laitner, John, 2000. "Structural Change and Economic Growth," Review of Economic Studies, Wiley Blackwell, vol. 67(3), pages 545-61, July.
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