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What is the appropriate level of aggregation for productivity indices? Comparing district, regional and national measures

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  • Conradie, Beatrice
  • Piesse, Jenifer
  • Thirtle, Colin G.

Abstract

This paper examines the appropriate level of aggregation for the construction of total factor productivity (TFP) indices. The dataset covers the magisterial districts and statistical regions of the Western Cape for the years 1952 to 2002. Over these five decades agricultural production in the Western Cape grew twice as fast as in the country as a whole but this average masks substantial regional variation. Results show that TFP growth was negative in the Karoo, moderate in the Swartland, Overberg and Southern Cape, and generally above 2% per year in the Boland and Breede River Valleys, where there is extensive irrigation.

Suggested Citation

  • Conradie, Beatrice & Piesse, Jenifer & Thirtle, Colin G., 2009. "What is the appropriate level of aggregation for productivity indices? Comparing district, regional and national measures," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(1), pages 1-12, March.
    • Handle: RePEc:ags:agreko:49162
    DOI: 10.22004/ag.econ.49162
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    References listed on IDEAS

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    1. Juliana Amadi & Jenifer Piesse & Colin Thirtle, 2004. "Crop Level Productivity in the Eastern Counties of England, 1970‐97," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 367-383, July.
    2. Olmstead, Alan L & Rhode, Paul, 1993. "Induced Innovation in American Agriculture: A Reconsideration," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 100-118, February.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
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    5. Liebenberg, Frikkie & Pardey, Philip G., 2012. "A long-run view of South African agricultural production and productivity," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 7(1), pages 1-25, October.
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