Agricultural Growth Accounting and Total Factor Productivity in Jordan

Abstract

This article develops new estimates of historical agricultural productivity growth in Jordan. It investigates how public policies such as agricultural research, investment in irrigation capital, and water pricing have contributed to agricultural productivity growth. The Food and Agriculture Organization (FAO) annual time series from 1961 to 2011 of all crops and livestock productions are the primary source for agricultural outputs and inputs used to construct the Törnqvist Index for the case of Jordan. The log-linear form of regression equation was used to examine the relationship between Total Factor Productivity (TFP) growth and different factors affecting TFP growth. The results showed that human capital has positive and direct significant impact on TFP implying that people with longer life expectancy has a significant impact on TFP growth. This article concludes that despite some recent improvement, agricultural productivity growth in Jordan continues to lag behind just about every other region of the world.