EconPapers    
Economics at your fingertips  
 

Agriculture and Aggregate Productivity: A Quantitative Cross-Country Analysis

Diego Restuccia (), Dennis Yang and Xiaodong Zhu ()

Working Papers from Virginia Polytechnic Institute and State University, Department of Economics

Abstract: A decomposition of aggregate labor productivity based on internationally comparable data reveals that a high share of employment and low labor productivity in agriculture are mainly responsible for low aggregate productivity in poor countries. Using a two-sector general-equilibrium model, we show that differences in economy-wide productivity, barriers to modern intermediate inputs in agriculture, and barriers in the labor market generate large cross-country di?erences in the share of employment and labor productivity in agriculture. The model implies a factor difference of 10.8 in aggregate labor productivity between the richest and the poorest 5 percent of the countries in the world, leaving the unexplained factor at 3.2. Overall, this two-sector framework performs much better than a single-sector growth model in explaining observed differences in international productivity.

Keywords: Productivity; International Comparisons; Agriculture; Intermediate Inputs; Barriers; Two-sector Model (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-eff
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26) Track citations by RSS feed

Downloads: (external link)
ftp://repec.econ.vt.edu/Papers/Yang/RYZ_July2007.pdf First version, 2007 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to connect to FTP server repec.econ.vt.edu: A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.

Related works:
Journal Article: Agriculture and aggregate productivity: A quantitative cross-country analysis (2008) Downloads
Working Paper: Agriculture and Aggregate Productivity: A Quantitative Cross-Country Analysis (2003) Downloads
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:vpi:wpaper:e07-3

Access Statistics for this paper

More papers in Working Papers from Virginia Polytechnic Institute and State University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Djavad Salehi-Isfahani ().

 
Page updated 2019-07-22
Handle: RePEc:vpi:wpaper:e07-3