scholarly journals AGRICULTURAL CREDITS AND AGRICULTURAL PRODUCTIVITY: CROSS-COUNTRY EVIDENCE

2020 ◽  
Vol 65 (supp01) ◽  
pp. 161-183
Author(s):  
UNAL SEVEN ◽  
SEMIH TUMEN

We present cross-country evidence suggesting that agricultural credits have a positive impact on agricultural productivity. In particular, we find that doubling agricultural credits generates around 4–5% increase in agricultural productivity. We use two different agricultural production measures: (i) the agricultural component of GDP and (ii) agricultural labor productivity. Employing a combination of panel-data and instrumental-variable methods, we show that agricultural credits operate mostly on the agricultural component of GDP in developing countries and agricultural labor productivity in developed countries. This suggests that the nature of the relationship between agricultural finance and agricultural output changes along the development path. We conjecture that the development of the agricultural finance system generates entry into the agricultural labor market, which pushes up the agricultural component of GDP and keeps down agricultural labor productivity in developing countries; while, in developed countries, it leads to labor-augmenting increase in agricultural production. We argue that replacement of the informal credit channel with formal and advanced agricultural credit markets along the development path is the main force driving the labor market response.

Author(s):  
Nicolás Arturo Torres Franco ◽  
Eleonora Dávalos ◽  
Leonardo Fabio Morales

Abstract Small family farms account for 72% of the farms in the world. Most of these farms, in developing countries, face labor productivity gaps. One of the strategies to increase agricultural productivity focuses on implementing technical assistance programs. Using agriculture microdata, we estimate the marginal treatment effect of receiving technical assistance services. We find that technical assistance generates heterogeneous effects. On average, agricultural units receiving technical assistance increased their agricultural production by 50.4%. However, there is important heterogeneity of technical assistance’s effects across the production units’ unobserved and observed characteristics.


2020 ◽  
Vol 136 (1) ◽  
pp. 505-561
Author(s):  
Julieta Caunedo ◽  
Elisa Keller

Abstract This article argues that accounting for capital-embodied technology greatly increases the importance of capital in explaining cross-country differences in agricultural labor productivity. To do so, we draw on a novel data set of agricultural capital prices. We document that new capital is more expensive in richer countries, both in absolute terms and relative to old capital. A model of endogenous adoption of capital of different quality links these price differences to the path of capital-embodied technology. In particular, our model recovers the level of embodied technology from the price of new capital and the growth rate of embodied technology from the price of new capital relative to old capital. We then measure the stocks of quality-adjusted capital in agriculture for a sample of 16 countries at different stages of development. We find that adjusting for differences in quality almost doubles the importance of capital in accounting for cross-country differences in agricultural labor productivity: from 21% to 37%. In addition, improvements in capital quality have been an important source of agricultural labor productivity growth over the past 25 years, accounting for 21% and 35% of the productivity growth in poor and rich countries, respectively.


2021 ◽  
Author(s):  
Nicolás Arturo Torres Franco ◽  
Eleonora Dávalos ◽  
Leonardo Fabio Morales

Small family farms account for 72 percent of the farms in the world. Most of these farms, in developing countries, face labor productivity gaps. One of the strategies to increase agricultural productivity focuses on implementing technical assistance programs. Using agriculture microdata, we estimate the marginal treatment effect of receiving technical assistance services. We find that technical assistance generates heterogeneous effects. On average, agricultural units receiving technical assistance increased their agricultural production by 50.4 percent. However, there is important heterogeneity of technical assistance’s effects across the production units’ unobserved and observed characteristics.


Author(s):  
Kevin Donovan

Abstract I consider the aggregate impact of low intermediate input intensity in the agricultural sector of developing countries. In a dynamic general equilibrium model with idiosyncratic shocks, incomplete markets, and subsistence requirements, farmers in developing countries use fewer intermediate inputs because it limits their exposure to uninsurable shocks. The calibrated model implies that Indian agricultural productivity would increase by 16 percent if markets were complete, driven by quantitatively important increases in both the average real intermediate share and measured TFP through lower misallocation. I then extend the results to consider the importance of risk in other contexts. First, the introduction of insurance decreases cross-country differences in agricultural labor productivity by 14 percent. Second, scaling the introduction of improved seeds to decrease downside risk reduces inequality by reallocating resources from rich to poor farmers via equilibrium effects. This reallocation substantially increases aggregate productivity relative to what would be expected from extrapolating the partial equilibrium impact.


2021 ◽  
pp. 11-20
Author(s):  
Federico Castillo ◽  
Armando Sánchez Vargas ◽  
J. K. Gilless ◽  
Michael Wehner

1986 ◽  
Vol 16 (2) ◽  
pp. 279-292 ◽  
Author(s):  
Derek Yach

The health effects of smoking have been well documented in developed countries. This article highlights the impact of smoking and tobacco production on health and agricultural production in Africa. It shows that smoking represents an important current and future health risk to people in Africa, which will place stresses on the development of their health services. Tobacco production is shown to be associated with food imports, deforestation, and an economic dependence on transnational corporations. Possible solutions are proposed.


2002 ◽  
Vol 39 (4) ◽  
pp. 390-424 ◽  
Author(s):  
Peter C Mancall ◽  
Joshua L Rosenbloom ◽  
Thomas Weiss

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