Abstract
The aim of this research was to measure total factor productivity (TFP) and analyze its behavior under the hypothesis that it shows an increasing trend. Among the methods used to measure TFP in the agricultural sector, chained quantity indexes stand out; the one used here was the Törnqvist-Theil index. TFP behavior was measured in order to determine Mexican agriculture and horticulture productivity behavior in the period 1990-2005. The results allow concluding that TFP did not grow, since there was positive TFP growth for only six out of the fourteen years studied. One explanation for this behavior is based on the fact that agricultural product prices have grown less than input prices. In particular, the ratio of agricultural product price indexes to factor price indexes favors agriculture and horticulture in only four of the fourteen years considered.
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