Total factor productivity in the chilean crop sector: 1961-1996

Jaime A. Olavarría

Chile

Universidad de Talca

Departamento de Economía Agraria

Boris E. Bravo-Ureta

United States

Universidad de Connecticut

Oficina de Asuntos Internacionales (OAI)

Horacio Cocchi

United States

Universidad de Connecticut

Oficina de Asuntos Internacionales (OAI)

Submitted: 2016-03-07

|

Accepted:

|

Published: 2011-10-21

DOI: https://doi.org/10.7201/earn.2004.08.07
Funding Data

Downloads

Keywords:

Total Factor Productivity, Törnqvist Index, Agriculture, Chile

Supporting agencies:

Se agradecen los comentarios de Daniel Solís.

Abstract:

The main objective of this paper is to determine the productivity growth in the Chilean Agricultural sector during the 1961-1996 period. Total Factor Productivity (TFP) was calculated using the Törnqvist index, which is a discrete approximation to the Divisia index. The data used to estimate these indexes are prices and quantities for 51 crops, and for four inputs "”labor, land, capital and intermediate factors. The rate of annual growth for the period 1961-96 was 2,69% and –0,09%, for products and inputs, respectively. Therefore, the TFP grew at an average annual rate of 2,78%. Given a significant annual variability in TFP growth, an analysis was carried out for seven sub-periods corresponding to different political regimes. TFP grew at an annual average of 1,83% with Alessandri (1961-64), 3,12% under the period of Frei Montalva (1965-70), 1,52% during the Allende years (1971-73), 6,11% during the first part of the Pinochet regime and –0,28% in the second period of Pinochet (1981-89), 3,12% during Aylwin (1990-93) and 5,28% under Frei Ruiz-Tagle (1994-96). The results suggest that the land reform program implemented in the 1960s did not have a negative effect on TFP growth, as has been previously argued by some authors.
Show more Show less

References:

AAEA (1980). Measurement of U.S. Agricultural Productivity: A Review of Current Statistics and Proposals for Change. American Agricultural Economics Association Washington, DC: U.S. Department of Agriculture, ESCS Tech. Bull. No. 1614.

Antle, J. M. y Capalbo, S. M. (1988). «An introduction to Recent Developments in Production Theory and Productivity Measurement». En Agricultural Productivity Measurement and Explanation, Capalbo S.M. y Antle, J.M. eds. Washington D.C.: Resource for the Future.

Arnade, C. (1998). «Using a Programming Approach to Measure International Agricultural Efficiency and Productivity». Journal of Agricultural Economics 49:67-84. https://doi.org/10.1111/j.1477-9552.1998.tb01252.x

Banco Central de Chile. Indicadores Económicos y Sociales. 1996.

Barnes, A. P. (2002). «Publicly-Funded UK Agricultural R&D and “Social” Total Factor Productivity ». Agricultural Economics 27:65-74. https://doi.org/10.1111/j.1574-0862.2002.tb00105.x

Bosworth, B., Dornbush, R. y Labán, R. eds. (1994). The Chilean Economy. Washington D.C., The Brookings Institution.

Coelli, T. J. y Prasada Rao, D.S. (2003). Total Factor Productivity Growth in Agriculture: A Malmquist Index Analysis of 93 Countries, 1980-2000. Paper presented at the 2003 International Association of Agricultural Economics, Durban, August 2003.

Denny, M. y Fuss, M. (1983). «A General Approach to Intertemporal and Interspatial Productivity Comparisons». Journal of Econometrics 23:315-330. https://doi.org/10.1016/0304-4076(83)90060-X

Diewert, W. E. (1976). «Exact and Superlative Index Numbers». Journal of Econometrics, 4:115-146. https://doi.org/10.1016/0304-4076(76)90009-9

Evenson, R. E.; Landau, D. y D. Ballou (1987). «Agricultural Productivity Measures for U.S. States 1950-1982». En Evaluating Agricultural Research and Productivity, Proceeding of a Symposium Atlanta, Georgia. Miscellaneous Publication #52. St. Paul, Minnesota: Agricultural Experiment Station, University of Minnesota.

Fan, S. (1997). «Production and Productivity Growth in Chinese Agriculture: New Measurement and Evidence». Food Policy 22:213-228. https://doi.org/10.1016/S0306-9192(97)00010-9

FAO. FAOSTAT. http://apps.fao.org/.

Fernández, M. C., Herruzo, A. C. y Evenson, R. E. (1993). «Measurement of the Total Factor Productivity of Spanish Agriculture: 1962-89». Working Papers. Economic Growth Center, Yale University.

Fulginiti, L.E. y Perrin, R.K. (1997). «LDC Agriculture: Nonparametric Malmquist Productivity Indexes». Journal of Development Economics 53:373-390. https://doi.org/10.1016/S0304-3878(97)00022-9

Hojman, D. E. (1993). Chile: The Political Economy of Development and Democracy in the 1990s. Pittsburgh, PA: University of Pittsburgh Press. https://doi.org/10.1057/9780230376656

Huffman, W.E. y Evenson, R.E. (1993). Science for Agriculture: A Long-Term Perspective. Ames, IA: Iowa State University Press.

Jarvis, L. (1994). «Changing Private and Public Roles en Technological Development: Lessons from the Chilean Fruit Sector». En Agricultural Technology: Policy Issues for the International Community, J.R. Anderson, ed. Wallingford: CAB International.

Marfán, M. y Bosworth, B. P. (1994). «Saving, Investment, and Economic Growth». En The Chilean Economy. B. Bosworth, R, Dornbush y R. Labán eds. Washington, D.C.: The Brooking Institution.

Martin, W. y Mitra, D. (1999). Productivity Growth and Convergence in Agriculture and Manufacturing. World Bank, Country Economics Department. https://doi.org/10.1596/1813-9450-2171

Nin, A., Arndt, C. y Preckel, P.V. (2003). «Is Agricultural Productivity in Developing Countries Really Shrinking? New Evidence Using a Modified Nonparametric Approach». Journal of Development Economics 71:395-415. https://doi.org/10.1016/S0304-3878(03)00034-8

ODEPA (1998). http://www.odepa.gob.cl/.

Olavarría, J. Total Factor Productivity Growth in the Chilean Crop Sector: 1961-1996. Tesis de Maestría, Departamento de Economía Agraria, Universidad de Connecticut, 1998.

Rosegrant, M.W. y Evenson, R.E. (1995). «Total Factor Productivity and Sources of Long-Term Growth in Indian Agriculture». EPTD Discussion Paper, No. 7, IFPRI.

Thirtle, C. y Bottomley, P. (1992). «Total Factor Productivity in UK agriculture: 1967-90». Journal of Agricultural Economics 43:381-399. https://doi.org/10.1111/j.1477-9552.1992.tb00233.x

Trueblood, M. A. y Coggins, J. (2003). «Intercountry Agricultural Efficiency and Productivity: a Malmquist Index Approach». Manuscrito http://www.apec.umn.edu/faculty/jcoggins/.

Shumway, C. R. (1988). «The Statistical Base for Agricultural Productivity Research: A Review and Critique.» En S.M. Capalbo and J.M. Antle, eds. Agricultural Productivity: Measurement and Explanation.Washington, DC: Resources for the Future.

Valdés, A., Hurtado, H. y Muchnik, E. (1990). Capítulo III. Chile. Economía Política de las Intervenciones de Precios Agrícolas en América Latina. Krueger A., M. Schiff y A. Valdés eds. Santiago: Banco Mundial. Centro Internacional para el Desarrollo Económico.

Velasco, A. (1994). «The State and Economic Policy: Chile 1952-92». The Chilean Economy B. Bosworth, R, Dornbush y R. Labán, eds. Washington, D.C.: The Brooking Institution.

Zepeda, L. (2001). «Agricultural Investment and Productivity in Developing Countries.» Economic and Social Development Paper, 148, FAO.

Show more Show less