Abstract
The sources of differences in labor productivity in agriculture between developed countries (DC's) and less developed countries (LDC's) are identified by estimating an aggregate agricultural production function based on cross-county data for 1960, 1970 and 1980. The production function was found to be stable over the entire period. Agriculture in the DC's was characterized by increasing returns and in the LDC's by constant returns to scale. The results imply that unfavorable man/land ratios do not represent an immediate barrier to rapid agricultural development in the low-income LDC's. But they may create a serious agricultural adjustment problem as those countries advance into the middle-income range.
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