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Agrarian mechanization in the settler economies. The diffusion of tractor in New Zealand and Uruguay in the 20th century

Author

Listed:
  • Pablo Castro

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Henry Willebald

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

The objective of this article is to study the process of agricultural mechanization in the temperate economies of new European settlements (settler economies) from a historical and comparative perspective. The historical significance of agricultural activity in these countries is evident in the characteristics of their productive specialization and the modes of their international integration. First, the article proposes constructing an indicator of agricultural mechanization in Uruguay and New Zealand for an extended period (the entire 20th century). Second, it offers an exploratory analysis of the factors that influenced the diffusion and adoption of the tractor in both countries. The evolutionary and neo-Schumpeterian perspective on technical change and innovation provides a conceptual framework that addresses the complex nature of technological change and allows for the study of its evolution over time, emphasizing its tacit, cumulative, and path-dependent nature. Based on a comprehensive characterization of the tractor fleet and its evolution, a logistic model is applied to determine the dynamics of adoption and diffusion of this technology. In general terms, the introduction of the tractor marked a milestone in the process of mechanization and revealed a dynamic that exhibited particularities associated with the nature and evolution of technological change. Initially, the introduction of the tractor in agricultural activities responded to a slow adoption process—and replacement of other techniques—that constituted an early stage of learning, after which it spread rapidly across the productive structure of the analyzed countries. Ultimately, the process reached a saturation point that coincided with the emergence of new production techniques that have progressively replaced the previously dominant ones. Secondly, it is observed that the technological dynamics differed between the countries, with Uruguay consistently lagging behind New Zealand. Finally, the analysis of the determinants of the different rates of tractor adoption and diffusion in both countries reveal that New Zealand producers faced significantly more favorable conditions in terms of lower fuel costs and higher wages, which incentivized the adoption of labor-saving technology such as the tractor. Additionally, greater access to financing, lower tractor prices, and a more conducive agrarian structure for mechanization facilitated a faster and more sustained adoption of this technology compared to Uruguay.

Suggested Citation

  • Pablo Castro & Henry Willebald, 2025. "Agrarian mechanization in the settler economies. The diffusion of tractor in New Zealand and Uruguay in the 20th century," Documentos de Trabajo (working papers) 25-07, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-07-25
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    File URL: https://hdl.handle.net/20.500.12008/49823
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    References listed on IDEAS

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    1. Rodolfo E. Manuelli & Ananth Seshadri, 2014. "Frictionless Technology Diffusion: The Case of Tractors," American Economic Review, American Economic Association, vol. 104(4), pages 1368-1391, April.
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    3. Possas, Mario Luiz & Salles-Filho, Sergio & da Silveira, JoseMaria, 1996. "An evolutionary approach to technological innovation in agriculture: some preliminary remarks," Research Policy, Elsevier, vol. 25(6), pages 933-945, September.
    4. Martini, Dinah Duffy & Silberberg, Eugene, 2006. "The Diffusion of Tractor Technology," The Journal of Economic History, Cambridge University Press, vol. 66(2), pages 354-389, June.
    5. Daniel P. Gross, 2018. "Scale versus scope in the diffusion of new technology: evidence from the farm tractor," RAND Journal of Economics, RAND Corporation, vol. 49(2), pages 427-452, June.
    6. Lovell S. Jarvis, 1981. "Predicting the Diffusion of Improved Pastures in Uruguay," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(3), pages 495-502.
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    JEL classification:

    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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