IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/5472.html
   My bibliography  Save this paper

Measures of fixed capital in agriculture

Author

Listed:
  • Butzer, Rita
  • Mundlak, Yair
  • Larson, Donald F.

Abstract

Capital is a fundamental component of agricultural production, and the accumulation of capital is key to growth in agriculture and the process of development. Unfortunately, cross-country data sets on agricultural fixed capital are rare. Using a common methodology that allows comparisons across countries, as well as over time, this paper introduces a data series on fixed capital in agriculture, based on national accounts data. The fixed capital measure differs remarkably from the Food and Agriculture Organization's data series on tractors, which has been widely utilized as a proxy for agricultural fixed capital. The authors construct comparable measures of capital in livestock and tree stock. They examine the evolution of the capital stocks from 1970 to 2000, paying particular attention to the changing composition of agricultural capital, as well as differences in the accumulation of capital for high-income and middle and lower-income countries. Using the capital measures in agricultural productivity analyses, the data yield estimated input elasticities substantially different from those found previously in the literature. The authors show explicitly that this is due to the improved data set on agricultural capital stocks, as well as the methodology used in the study.

Suggested Citation

  • Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2010. "Measures of fixed capital in agriculture," Policy Research Working Paper Series 5472, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5472
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/11/09/000158349_20101109102000/Rendered/PDF/WPS5472.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fulginiti, Lilyan E & Perrin, Richard K, 1993. "Prices and Productivity in Agriculture," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 471-482, August.
    2. Mundlak, Yair & Butzer, Rita & Larson, Donald F., 2012. "Heterogeneous technology and panel data: The case of the agricultural production function," Journal of Development Economics, Elsevier, vol. 99(1), pages 139-149.
    3. Restuccia, Diego & Yang, Dennis Tao & Zhu, Xiaodong, 2008. "Agriculture and aggregate productivity: A quantitative cross-country analysis," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 234-250, March.
    4. Crego, Al & Larson, Donald & Butzer, Rita & Mundlak, Yair, 1998. "A new database on investment and capital for agriculture and manufacturing," Policy Research Working Paper Series 2013, The World Bank.
    5. Akiyama, T. & Trivedi, P. K., 1987. "Vintage production approach to perennial crop supply : An application to tea in major producing countries," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 133-161.
    6. Yair Mundlak & Donald Larson & Al Crego, 1998. "Agricultural Development: Issues, Evidence and Consequences," International Economic Association Series, in: Yair Mundlak (ed.), Contemporary Economic Issues, chapter 8, pages 149-172, Palgrave Macmillan.
    7. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    8. Larson, Donald & Mundlak, Yair, 1997. "On the Intersectoral Migration of Agricultural Labor," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 295-319, January.
    9. Binswanger, Hans & Yang, Maw-Cheng & Bowers, Alan & Mundlak, Yair, 1987. "On the determinants of cross-country aggregate agricultural supply," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 111-131.
    10. Alejandro Nin‐Pratt & Bingxin Yu, 2010. "Getting implicit shadow prices right for the estimation of the Malmquist index: the case of agricultural total factor productivity in developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 349-360, May.
    11. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    12. Larson, David F. & Butzer, Rita & Mundlak, Yair & Crego, Al, 2000. "A Cross-Country Database for Sector Investment and Capital," World Bank Economic Review, World Bank Group, vol. 14(2), pages 371-391, May.
    13. Carlos Arnade, 1998. "Using a Programming Approach to Measure International Agricultural Efficiency and Productivity," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 67-84, March.
    14. Barbara J. Craig & Philip G. Pardey & Johannes Roseboom, 1997. "International Productivity Patterns: Accounting for Input Quality, Infrastructure, and Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1064-1076.
    15. repec:adr:anecst:y:1999:i:55-56:p:19 is not listed on IDEAS
    16. Derek Headey & Mohammad Alauddin & D.S. Prasada Rao, 2010. "Explaining agricultural productivity growth: an international perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 1-14, January.
    17. Mundlak, Yair, 2001. "Production and supply," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 1, pages 3-85, Elsevier.
    18. Arega D. Alene, 2010. "Productivity growth and the effects of R&D in African agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 223-238, May.
    19. El-hadj M Bah & Josef C Brada, 2009. "Total Factor Productivity Growth, Structural Change and Convergence in the New Members of the European Union," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 51(4), pages 421-446, December.
    20. Antle, John M, 1983. "Infrastructure and Aggregate Agricultural Productivity: International Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 31(3), pages 609-619, April.
    21. Lilyan E. Fulginiti & Richard K. Perrin, 1998. "Agricultural productivity in developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 45-51, September.
    22. Lilyan E. Fulginiti, 2010. "What comes first, agricultural growth or democracy?," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 15-24, January.
    23. Yair Mundlak & Donald F. Larson & Rita Butzer, 1999. "Rethinking Within and Between Regressions: The Case of Agricultural Production Functions," Annals of Economics and Statistics, GENES, issue 55-56, pages 475-501.
    24. Lau, Lawrence J. & Yotopoulos, Pan A., 1989. "The meta-production function approach to technological change in world agriculture," Journal of Development Economics, Elsevier, vol. 31(2), pages 241-269, October.
    25. Keith O. Fuglie, 2008. "Is a slowdown in agricultural productivity growth contributing to the rise in commodity prices?," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 431-441, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julian M. Alston & Philip G. Pardey, 2014. "Agriculture in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 121-146, Winter.
    2. Ehis T. Omoluabi & Olufemi A. Akintunde & Florence T. & Haruna T.H., 2016. "Capital Investment Decisions on Entrepreneurial Agricultural Projects in Kwara State," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 358-371, October.
    3. Zheng, Yu & Alexandre, Gohin, 2018. "Agricultural productivity and price volatility in France: a dynamic stochastic partial equilibrium approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 274354, Agricultural and Applied Economics Association.
    4. Helfand, Steven M. & Magalhaes, Marcelo M. & Rada, Nicholas E., 2015. "Brazil's Agricultural Total Factor Productivity Growth by Farm Size," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204875, Agricultural and Applied Economics Association.
    5. Néstor A. Le Clech & Carmen Fillat Castejón, 2017. "Productivity, efficiency and technical change in world agriculture: a färe-primont index approach," Documentos de Trabajo dt2017-09, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    6. Mundlak, Yair & Butzer, Rita & Larson, Donald F., 2012. "Heterogeneous technology and panel data: The case of the agricultural production function," Journal of Development Economics, Elsevier, vol. 99(1), pages 139-149.
    7. Fuglie, Keith, 2015. "Accounting for growth in global agriculture," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 4(3), pages 1-34, December.
    8. Anderson, Kym & Bruckner, Markus, 2012. "Distortions to Agriculture and Economic Growth in Sub-Saharan Africa," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124908, Agricultural and Applied Economics Association.
    9. Helfand, Steven M. & Magalhaes, Marcelo M. & Rada, Nicholas E., 2015. "Brazil's Agricultural Total Factor Productivity Growth by Farm Size," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204875, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    10. Burcu Ilter & Burcu Selin Yilmaz, 2016. "Understanding Determinants of Organic Food Consumption: Turkey Example," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 372-389, October.
    11. Ehis T. Omoluabi & Olufemi A. Akintunde & T. Florence & T.H. Haruna, 2016. "Capital Investment Decisions on Entrepreneurial Agricultural Projects in Kwara State," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(5), pages 141-154, OCTOBER.
    12. Asiedu, Edward & Sadekla, Sylvester S. & Bokpin, Godfred A., 2020. "Aid to Africa’s agriculture towards building physical capital: Empirical evidence and implications for post-COVID-19 food insecurity," World Development Perspectives, Elsevier, vol. 20(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mundlak, Yair & Butzer, Rita & Larson, Donald F., 2012. "Heterogeneous technology and panel data: The case of the agricultural production function," Journal of Development Economics, Elsevier, vol. 99(1), pages 139-149.
    2. Markus Eberhardt & Francis Teal, 2013. "No Mangoes in the Tundra: Spatial Heterogeneity in Agricultural Productivity Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(6), pages 914-939, December.
    3. Shilpa Chaudhary, 2012. "Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index," Working papers 215, Centre for Development Economics, Delhi School of Economics.
    4. Eberhardt, Markus & Teal, Francis, 2009. "A Common Factor Approach to Spatial Heterogeneity in Agricultural Productivity Analysis," MPRA Paper 15810, University Library of Munich, Germany.
    5. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    6. Arega D. Alene, 2010. "Productivity growth and the effects of R&D in African agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 223-238, May.
    7. Chan-Kang, Connie & Pardey, Philip G. & Wood, Stanley & Roseboom, Johannes & Cremers, Marleen, 1999. "Reassessing Productivity Growth In African Agriculture," 1999 Annual meeting, August 8-11, Nashville, TN 21600, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Mundlak, Yair, 1997. "Leonard K. Elmhirst Lecture: The Dynamics of Agriculture," 1997 Conference, August 10-16, 1997, Sacramento, California 197028, International Association of Agricultural Economists.
    9. Zúniga-González, Carlos Alberto, 2011. "Total Factor Productivity Growth in Agriculture: A Malmquist Index Analysis of 14 Countries, 1979-2008," Conference Papers 114036, National Autonomous University of Nicaragua, León (Unan-León), Researching Center for Applied Economics (RCAE).
    10. Sipilainen, Timo & Kuosmanen, Timo & Kumbhakar, Subal C., 2008. "Measuring productivity differentials – An application to milk production in Nordic countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44277, European Association of Agricultural Economists.
    11. Derek Headey & Mohammad Alauddin & D.S. Prasada Rao, 2010. "Explaining agricultural productivity growth: an international perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 1-14, January.
    12. Mounir Belloumi & Mohamed Salah Matoussi, 2008. "Measuring Agricultural Productivity Growth in MENA Countries," Working Papers 416, Economic Research Forum, revised 06 Jan 2008.
    13. Zuniga Gonzalez, Carlos Alberto, 2012. "Total factor productivity and Bio Economy effects," MPRA Paper 49355, University Library of Munich, Germany, revised 13 Nov 2012.
    14. Larson, David F. & Butzer, Rita & Mundlak, Yair & Crego, Al, 2000. "A Cross-Country Database for Sector Investment and Capital," World Bank Economic Review, World Bank Group, vol. 14(2), pages 371-391, May.
    15. Yu, Bingxin & Nin Pratt, Alejandro, 2011. "Agricultural Productivity and Policies in Sub-Saharan Africa," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 105400, Agricultural and Applied Economics Association.
    16. Néstor A. Le Clech & Carmen Fillat Castejón, 2017. "Productivity, efficiency and technical change in world agriculture: a färe-primont index approach," Documentos de Trabajo dt2017-09, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    17. Berthold Herrendorf & Todd Schoellman, 2015. "Why is Measured Productivity so Low in Agriculture?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(4), pages 1003-1022, October.
    18. Nin, Alejandro & Arndt, Channing & Preckel, Paul V., 2003. "Is agricultural productivity in developing countries really shrinking? New evidence using a modified nonparametric approach," Journal of Development Economics, Elsevier, vol. 71(2), pages 395-415, August.
    19. Kerstens, Kristiaan & O’Donnell, Christopher & Van de Woestyne, Ignace, 2019. "Metatechnology frontier and convexity: A restatement," European Journal of Operational Research, Elsevier, vol. 275(2), pages 780-792.

    More about this item

    Keywords

    Economic Theory&Research; Investment and Investment Climate; Rural Development Knowledge&Information Systems; Economic Growth; Emerging Markets;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5472. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.