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Total Factor Productivity Growth in Agriculture: The Role of Technological Capital

In: Handbook of Agricultural Economics

Author

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  • Dias Avila, Antonio Flavio
  • Evenson, Robert E.

Abstract

In this chapter we compute measures of total factor productivity (TFP) growth for developing countries and then contrast TFP growth with technological capital indexes. In developing these indexes, we incorporate schooling capital to yield two new indexes: Invention-Innovation Capital and Technology Mastery. We find that TFP performance is strongly related to technological capital and that technological capital is required for TFP and cost reduction growth. Investments in technological capital require long-term (20- to 40-year) investments, which are typically made by governments and aid agencies and are the only viable escape route from mass poverty.

Suggested Citation

  • Dias Avila, Antonio Flavio & Evenson, Robert E., 2010. "Total Factor Productivity Growth in Agriculture: The Role of Technological Capital," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 4, chapter 72, pages 3769-3822, Elsevier.
    • Handle: RePEc:eee:hagchp:6-72
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    More about this item

    Keywords

    total factor productivity; technological capital; crop production; livestock production; aggregate production;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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