Convergence in US and EU agriculture

Luciano Gutierrez

European Review of Agricultural Economics, 2000, vol. 27, issue 2, 187-206

Abstract: This paper finds strong and robust evidence of convergence of labour productivity in agriculture across all US states and 11 EU countries during 1970-1992. Moreover, off-farm migration has a positive effect on the speed of convergence, especially in the EU. Holding the off-farm migration rate constant, the speed of convergence for EU countries (2.9 per cent per year) is stronger than for US states (1.9 per cent per year). A convergence speed of 2.9 per cent means that an EU country needs about 10 years to eliminate one-quarter of the gap between its initial output per worker and its own steady state, and half a century to eliminate three-quarters of the gap. Copyright 2000, Oxford University Press.

Date: 2000
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