EconPapers    
Economics at your fingertips  
 

Agricultural Productivity and Industrial Growth. Evidence from Brazil

Jacopo Ponticelli (), Bruno Caprettini and Paula Bustos
Additional contact information
Bruno Caprettini: Universitat Pompeu Fabra

No 895, 2012 Meeting Papers from Society for Economic Dynamics

Abstract: We study the effects of agricultural productivity on industrial development. Productivity growth in agriculture can speed up industrial growth through three channels. First it releases labor, a factor intensively used in manufacturing. Second, it generates income, increasing demand for manufacturing goods. Third, it might increase savings that are channeled to finance industrial projects. However, Matsuyama (1992) notes that some of the positive effects of agricultural productivity on industrialization occur only in closed economies, while in open economies a comparative advantage in agriculture can slow down industrial growth. We provide direct empirical evidence on the impact of a new agricultural technology on industrial growth by studying the effects of the widespread adoption of genetically modified soybean seeds on Brazilian manufacturing firms. To establish causality, we exploit exogenous differences in soil and weather characteristics across geographical areas leading to a differential impact of the new technology on yields.

Date: 2012
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2012/paper_895.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed012:895

Access Statistics for this paper

More papers in 2012 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2020-10-30
Handle: RePEc:red:sed012:895