TOTAL FACTOR PRODUCTIVITY AND PROCESSED FOOD TRADE: A CROSS-COUNTRY ANALYSIS

Munisamy Gopinath and Jason Carver

Journal of Agricultural and Resource Economics, 2002, vol. 27, issue 2, 15

Abstract: Processed food products account for a growing share of global agricultural trade. Growth in total factor productivity and intersectoral linkages between agricultural and processed foodsectors are hypothesized as factors explaining this phenomenon. Estimating the neoclassical trade model using an internationally comparable database, we find evidence of (a) Hechsher-Ohlin (factor endowments) and Ricardian-type (technology) effects in agricultural and processed food trade, and (b) transfer of comparative advantage from the primary agricultural sector to the processed food sector. Thus, public policies protecting primary agriculture can adversely affect processed food sectors, while those supporting R&D efforts can bring about dynamic and comparative advantage.

Keywords: Productivity; Analysis (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:31130

DOI: 10.22004/ag.econ.31130

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