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Agricultural productivity and structural transformation : evidence from Brazil


Bustos, Paula; Caprettini, Bruno; Ponticelli, Jacopo (2015). Agricultural productivity and structural transformation : evidence from Brazil. Fama-Miller Working Paper, Chicago Booth Research Papers 14-07, University of Chicago, Booth School of Business.

Abstract

We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil, which had heterogeneous effects on agricultural productivity across areas with different soil and weather characteristics. We find that technical change in soy production was strongly labor saving and led to industrial growth, as predicted by the model.

Abstract

We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil, which had heterogeneous effects on agricultural productivity across areas with different soil and weather characteristics. We find that technical change in soy production was strongly labor saving and led to industrial growth, as predicted by the model.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:F16, F43, O14, Q16
Uncontrolled Keywords:Agricultural productivity, structural transformation, industrial development, labor saving technical change, genetically engineered soy
Language:English
Date:June 2015
Deposited On:02 Feb 2016 16:51
Last Modified:17 Aug 2017 08:56
Series Name:Fama-Miller Working Paper, Chicago Booth Research Papers
Number of Pages:50
Additional Information:Revised version
Official URL:http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2619420_code1695706.pdf?abstractid=2405089&mirid=1&type=2
Related URLs:http://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalbrowse&journal_id=179253
http://www.zora.uzh.ch/120214/

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