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A three-factor agricultural production function: The case of Canada

Author

Listed:
  • Cristina Echevarria

    (University of Saskatoon)

Abstract

This paper estimates a constant returns to scale agricultural production function with just threeinputs: land, labour and capital -the basic factors of production. It uses the shares approach thatSolow used in 1957 and very disaggregated Canadian data. A constant returns to scale function ofthe three basic factors of production is a useful tool for macroeconomic, and growth anddevelopment studies. The main results of this paper are that, first, in Canada agriculture is lesslabour intensive than both services and industry, but capital intensity is similar in the threesectors. Second, the share of land in value added is estimated to be 16% Third, total factorproductivity growth in Canada has been roughly the same -0'3%- in agriculture and manufacturesover the period 1971-91.

Suggested Citation

  • Cristina Echevarria, 1997. "A three-factor agricultural production function: The case of Canada," Working Papers. Serie AD 1997-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1997-12
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1997-12.pdf
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    References listed on IDEAS

    as
    1. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity across Industries and Countries: Time Series Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 135-146, February.
    2. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
    3. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    4. Echevarria, Cristina, 1997. "Changes in Sectoral Composition Associated with Economic Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 431-452, May.
    5. Stockman, Alan C., 1988. "Sectoral and national aggregate disturbances to industrial output in seven European countries," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 387-409.
    6. Costello, Donna M, 1993. "A Cross-Country, Cross-Industry Comparison of Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 207-222, April.
    7. John Laitner, 2000. "Structural Change and Economic Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(3), pages 545-561.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Constant returns to scale; land; total factor productivity growth;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D2 - Microeconomics - - Production and Organizations
    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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