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Agricultural productivity and structural transformation : evidence from Brazil


Bustos, Paula; Caprettini, Bruno; Ponticelli, Jacopo (2016). Agricultural productivity and structural transformation : evidence from Brazil. American Economic Review, 106(6):1320-1365.

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:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Agricultural productivity, structural transformation, industrial development, labor saving technical change, genetically engineered soy
Language:English
Date:June 2016
Deposited On:15 Jun 2016 15:28
Last Modified:08 Dec 2017 17:46
Publisher:American Economic Association
ISSN:0002-8282
Publisher DOI:https://doi.org/10.1257/aer.20131061
Related URLs:http://www.zora.uzh.ch/119408/

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