Productivity growth and technology capital in the global agricultural economy.

Abstract

Abstract This chapter makes an effort to derive estimates of agricultural total factor productivity (TFP) growth by country, region and for the world as a whole for the period 1961-2009. To estimate TFP, a consistent growth accounting framework based primarily on FAO input and output data is used, drawing upon country-level case studies for estimates of input cost shares needed for aggregating inputs into a total. The results show accelerating productivity for the world as a whole over time, mostly resulting from improved productivity performance in developing countries. There is wide variation among countries, however. To help explain these differences, the correlation between country-level indexes of 'technology capital' and their long-run agricultural TFP growth rates are examined. Evidence is found that national capacities in agricultural and industrial research are significantly correlated with agricultural TFP growth. National capacities in agricultural extension and farmer schooling are also important, but, at the margin, seem to be less essential than research capacity in releasing constraints to productivity.