Hostname: page-component-78c5997874-v9fdk Total loading time: 0 Render date: 2024-11-19T00:53:40.346Z Has data issue: false hasContentIssue false

Agricultural Productivity Convergence: Myth or Reality?

Published online by Cambridge University Press:  26 January 2015

Biswo N. Poudel
Affiliation:
Department of Agricultural and Resource Economics, University of California, Berkeley, Berkeley, CA
Krishna P. Paudel
Affiliation:
Louisiana State University and LSU Agricultural Center, Baton Rouge, LA
David Zilberman
Affiliation:
Department of Agricultural and Resource Economics, University of California, Berkeley, Berkeley, CA

Abstract

We tested agricultural productivity convergence in the United States using the state level total factor productivity data and utilizing new estimation and cluster identification methods to identify convergence in the data. The empirical investigation did not indicate any evidence of agricultural total factor productivity (TFP) convergence at the state level. However, we found the evidence of TFP convergence at the regional level for some regions/clusters.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Afifi, A.A., and Clark, V. Computer-Aided Multivariate Analysis, 2nd ed. London: Chapman and Hall Limited, 1999.Google Scholar
Ball, V.E., Hallaban, C., and Nehring, R.Convergence of Productivity: An Analysis of the Catchup Hypothesis within a Panel of States.American Journal of Agricultural Economics 86(2004):131521.10.1111/j.0002-9092.2004.00683.xGoogle Scholar
Barro, R.J.Economic Growth in a Cross Section of Countries.The Quarterly Journal of Economics 106(1991):407–43.10.2307/2937943Google Scholar
Barro, R.J., and Sala-i-Martin, X.X. Economic Growth. New York: McGraw Hill, 1995.Google Scholar
Baumol, W.J.Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show.The American Economic Review 76(1986):107285.Google Scholar
Bertela, G.Models of Economic Integration and Localized Growth.” Adjustments and Growth in the European Monetary Union. Torres, F. and Giavazzi, F., eds., pp. 156179. Cambridge: Cambridge University Press, 1993.Google Scholar
Breitung, J.The Local Power of Some Unit Root Tests for Panel Data.” Nonstationary Panels, Panel Cointegration, and Dynamic Panels, Advances in Econometrics, Volume 15. Baltagi, B.H., Fomby, T.B., and Hill, R.C., eds. Amsterdam: Elsevier Science, 2000.Google Scholar
Carree, M., and Klomp, L.Testing the Convergence Hypothesis: A Comment.The Review of Economics and Statistics 79(1997):683–86.10.1162/003465397557114Google Scholar
Cho, D., and Graham, S.The Other Side of Conditional Convergence.Economics Letters 50(1996):285–90.10.1016/0165-1765(95)00745-8Google Scholar
Coulombe, S., and Tremblay, J.F.Human Capital and Regional Convergence in Canada.” Departement des Sciences Economiques from Ottawa – Departement des Sciences Economiques. Internet site: http://www.csls.ca/events/oct98/coul.pdf (Accessed December 1, 2003).Google Scholar
De Long, J.B.Productivity Growth, Convergence, and Welfare: Comment.The American Economic Review 78(1988):113854.Google Scholar
Fousekis, P.Price Convergence in the EU Poultry and Eggs Markets.Economic Bulletin 3(2008):111.Google Scholar
Furceri, D.β and σ-Convergence: A Mathematical Relation of Causality.Economics Letters 89,2(2005):212–15.10.1016/j.econlet.2005.05.026Google Scholar
Garofalo, G., and Yamarik, S.Regional Convergence: Evidence from a New State-By-State Capital Stock Series.The Review of Economics and Statistics 4(2001):316–23.Google Scholar
Gyawali, B., Fraser, R., Bukenya, J., and Schelhas, J.Income Convergence in a Rural, Majority African-American Region.The Review of Regional Studies 38(2008):4565.Google Scholar
Hadri, K.Testing for Stationarity in Heterogeneous Panel Data.The Econometrics Journal 3(2000):148–61.10.1111/1368-423X.00043Google Scholar
Harris, R.D.F. and Tzavalis, E.Inference for Unit Roots in Dynamic Panels where the Time Dimension is Fixed.Journal of Econometrics 91(1999):201–26.10.1016/S0304-4076(98)00076-1Google Scholar
Im, K.S., Pesaran, M.H., and Shin, Y.Testing for Unit Roots in Heterogeneous Panels.Journal of Econometrics 15(2003):5374.Google Scholar
Islam, N.Growth Empirics: A Panel Data Approach.The Quarterly Journal of Economics 110(1995):112770.10.2307/2946651Google Scholar
Jerzmanowski, M.Total Factor Productivity Differences: Appropriate Technology vs. Efficiency.European Economic Review 5(2007):2080–110.Google Scholar
Kumar, S., and Russell, R.Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence.” The American Economic Review 92(2002):527–48.Google Scholar
Levin, A., Lin, C., and Chu, C.J.Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties.Journal of Econometrics 108(2002):124.10.1016/S0304-4076(01)00098-7Google Scholar
Lichtenberg, F.R.Testing the Convergence Hypothesis.The Review of Economics and Statistics 76(1994):576–79.10.2307/2109982Google Scholar
Liu, Y, Shumway, C.R., Rosenman, R., and Ball, VE.Productivity Growth and Convergence in U.S. Agriculture: New Cointegration Panel Data Results.” Applied Economics, 19 March 2009 (iFirst). DOI:10.1080/00036840802389087.AMBIGUOUS 20454555,19750139,20351794Google Scholar
Lucas, R.E.On the Mechanics of Economic Development.Journal of Monetary Economics 22(1988):342.10.1016/0304-3932(88)90168-7Google Scholar
Mankiw, N.G., Romer, D., and Weil, D.N.A Contribution to the Empirics of Economic Growth.The Quarterly Journal of Economics 107(1992):407–37.10.2307/2118477Google Scholar
Martin, W., and Mitra, D.Productivity Growth and Convergence in Agriculture and Manufacturing.Economic Development and Cultural Change 49(2001):403–22.10.1086/452509Google Scholar
Maudos, J., Pastor, J.M., and Serrano, L.Total Factor Productivity Measurement and Human Capital in OECD Countries.Economics Letters 6(1999):389–92.10.1080/135048599353159Google Scholar
McCunn, A., and Huffman, W.Convergence in Productivity U.S. Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research.American Journal of Agricultural Economics 82(2000):370–88.10.1111/0002-9092.00032Google Scholar
Miller, M.S., and Upadhyay, M.P.Total Factor Productivity and the Convergence Hypothesis.Journal of Macroeconomics 24(2002):267–86.10.1016/S0164-0704(02)00022-8Google Scholar
Mukherjee, A., and Kuroda, Y.Productivity Growth in Indian Agriculture: Is there Evidence of Convergence Across States?Agricultural Economics 29(2003):4353.10.1111/j.1574-0862.2003.tb00146.xGoogle Scholar
Mulligan, C, and Sala-i-Martin, X.Measuring Aggregate Human Capital.” NBER Working Paper No. 5016, 1995.Google Scholar
Panopoulou, E., and Pantelidis, T.Club Convergence in Carbon Dioxide Emissions.” Environmental and Resource Economics 44(2009).Google Scholar
Phillips, P.C.B. and Sul, D.Transition Modeling and Econometric Convergence Tests.Econometrica 75(2007):1771–855.10.1111/j.1468-0262.2007.00811.xGoogle Scholar
Rezitis, A.N.Agricultural Productivity Convergence across Europe and the United States of America.Applied Economics Letters 12(2005):443–46.10.1080/13504850500109691Google Scholar
Rezitis, A.N.Agricultural Productivity and Convergence: Europe and the United States.Applied Economics 42(2010):102944.10.1080/00036840701721026Google Scholar
Schultz, T.W.Investment in Human Capital.The American Economic Review 51(1961):117.Google Scholar
Smyth, P.Model Selection for Probabilistic Clustering Using Cross-Validated Likelihood.Statistics and Computing 10(2000):6372.10.1023/A:1008940618127Google Scholar
Solow, R.Technical Change and the Aggregate Production Function.The Review of Economics and Statistics 39(1957):312–20.10.2307/1926047Google Scholar
Thirtle, C, Piesse, J., Lusigi, A., and Suhar-iyanto, K.Multi-Factor Agricultural Productivity, Efficiency and Convergence in Botswana, 1981-1996.Journal of Development Economics 71(2003):605–24.10.1016/S0304-3878(03)00027-0Google Scholar
United States Department of Agriculture, Economic Research Service. State Total Factor Productivity in Agriculture 1960-96. Washington, DC: USDA, 2003.Google Scholar
Wichmann, T. Technology Adoption in Agriculture and Convergence across Economies. Technical University Berlin and Institute for Economic Research, 1998. Internet site: http://www. berlecon.de/tw/agricon.pdf (Accessed December 1, 2003).Google Scholar