Authors: Larson, Donald F.; León, Mauricio

Source: World Bank Economic Review, Volume 20, Number 3, 2006 , pp. 449-471(23)

Publisher: Oxford University Press

Abstract:

Spatial disparity in incomes and productivity is apparent across and within countries. Most studies of the determinants of such differences focus on cross-country comparisons or location choice among firms. Less studied are the large differences in agricultural productivity within countries related to concentrations of rural poverty. For policy, understanding the determinants of this geography of agricultural productivity is important, because strategies to reduce poverty often feature components designed to boost regional agricultural incomes. Census and endowment data for Ecuador are used to estimate a model of endogenous technology choice to explain large regional differences in agricultural output and factor productivity. A composite-error estimation technique is used to separate systemic determinants from idiosyncratic differences. Simulations are employed to explore policy avenues. The findings suggest a differentiation between the types of policies that promote growth in agriculture generally and those that are more likely to assist the rural poor.

Document Type: Research article

DOI: http://dx.doi.org/10.1093/wber/lhl003

Publication date: 2006-01-01

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• The World Bank Economic Review is one of the most widely read scholarly economic journals in the world. It is the only journal of its kind that specializes in quantitative development policy analysis. Subject to strict refereeing, articles examine policy choices and therefore emphasize policy relevance rather than theory or methodology. Readers include economists and other social scientists in government, business, international agencies, universities, and research institutions. The WBER seeks to provide the most current and best research in the field of economic development.
  
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