Technological change, capital deepening, and agricultural total factor productivity (TFP) growth: Cross‐country comparison of 18 OECD countries

Yu Sheng

Applied Economic Perspectives and Policy, 2025, vol. 47, issue 5, 1848-1868

Abstract: This paper employs the data envelope analysis (DEA) to assess technological progress and its impact on agricultural total factor productivity (TFP) across 18 the Organization for Economic Cooperation and Development (OECD) countries from 1973 to 2015. Utilizing a newly constructed production accounting dataset, we estimate annual frontier shifts and decompose these over three 15‐year subperiods—1973–1987, 1987–2001, and 2001–2015—into technological progress, efficiency improvements, and input scale change. Our results reveal technological progress as the predominant driver of agricultural TFP growth, consistently offsetting input scale contractions. Yet, post‐2000, this progress slows, diverging from the rapid biological and digital innovations transforming industrial sectors. This deceleration reflects a shift from Hicks‐neutral to labor‐augmenting technological progress, disproportionately favoring capital‐intensive economies and amplifying cross‐country TFP disparities.

Date: 2025
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https://doi.org/10.1002/aepp.13535

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:47:y:2025:i:5:p:1848-1868

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