Productivity growth and convergence in US agriculture: new cointegration panel data results

Yucan Liu, C. Shumway, Robert Rosenman and Virgil Eldon Ball

Applied Economics, 2011, vol. 43, issue 1, 91-102

Abstract: Dynamic effects of health and inter-state and inter-industry knowledge spillovers, Total Factor Productivity (TFP) growth and convergence in US agriculture are examined using recently developed procedures for panel data and a growth accounting model. Strong evidence is found to support the hypothesis that TFP converges to a steady state. Health care supply in rural areas and research spillovers from other states and from nonagricultural sectors are found to have significant impacts on the productivity growth rate in both the short and the long run. These results suggest a richer set of opportunities for policy makers to enhance productivity growth than previously considered.

Date: 2011
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Working Paper: Productivity Growth and Convergence in U.S. Agriculture: New Cointegration Panel Data Results (2008)
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DOI: 10.1080/00036840802389087

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