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GTAP Resource #2665

"Developing Countries and Total Factor Productivity Growth in Agriculture: New Evidence Using a Malmquist Index with Constrained Implicit Shadow Prices"
by Nin-Pratt, Alejandro

We analyze input shadow prices determined by the linear programming problems used to estimate distance functions and the evolution of agricultural TFP growth in developing countries in the past 40 years using a non-parametric Malmquist index and its components: efficiency and technical change. We find that even for the relatively large sample of countries in our study, there is a high incidence of zero shadow prices in our estimates. In order to define suitable limits to the value that implicit input shares take, we introduce a priori information on the likely value of these shares as constraints in the LP problems. In order to see how different shadow prices affect the measure of TFP changes we estimate non-parametric Malmquist indices using unconstrained and constrained estimates of distance functions for 72 developing countries. The paper also presents detailed results using constrained shadow prices of the contribution of efficiency and technical change to total TFP growth and the contribution of different countries and regions to total TFP growth in developing countries. We find that agricultural TFP in developing countries have been growing steadily in the past 20 years. Remarkably, we found a clear improvement in the performance of Sub-Saharan Africa since the mid 1980s.

Resource Details (Export Citation) GTAP Keywords
Category: 2008 Conference Paper
Status: Published
By/In: Presented at the 11th Annual Conference on Global Economic Analysis, Helsinki, Finland
Date: 2008
Created: Nin-Pratt, A. (4/13/2008)
Updated: Nin-Pratt, A. (4/13/2008)
Visits: 2,936
- Economic development
- Technological change
- The GTAP Data Base and extensions
- Asia (East)

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