Climatic effects and agricultural productivity: The case of El Salvador

Boris E. Bravo-Ureta

United States

University of Connecticut

Professor Emeritus, Agricultural and Resource Economics, University of Connecticut

Eric Njuki

United States

United States Department of Agriculture image/svg+xml

Research Agricultural Economist, USDA, Economic Research Service

Roberto Jara-Rojas

https://orcid.org/0000-0001-5693-0037

Chile

University of Talca image/svg+xml

Associate Professor, Department of Agricultural Economics, University of Talca

Lina Salazar

United States

Inter-American Development Bank image/svg+xml

Senior Economist, Inter-American Development Bank

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Accepted: 2025-05-14

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Published: 2026-06-26

DOI: https://doi.org/10.7201/earn.2026.01.01
Funding Data

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Keywords:

El Salvador, panel data, Stochastic Production Frontiers, productivity, climatic effects

Supporting agencies:

InterAmerican Development Bank

Abstract:

We analyze Total Factor Productivity (TFP) using a large farm level panel data set from El Salvador, a country highly vulnerable to climatic events. For this purpose, alternative stochastic production frontier models are implemented to evaluate the robustness of the analysis. Key findings show that temperature shocks adversely impact output, aggregate rainfall has a positive effect, while mean temperature exhibits no significant effect. Furthermore, TFP declined by -5.36 % on average, while average technological change and technical efficiency declined by -2.25 % and -1.36 %, respectively with considerable variability across time and space.

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