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Productivity growth and convergence in US agriculture: new cointegration panel data results

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Dynamic effects of health and inter-state and inter-industry knowledge spillovers, Total Factor Productivity (TFP) growth and convergence in US agriculture are examined using recently developed procedures for panel data and a growth accounting model. Strong evidence is found to support the hypothesis that TFP converges to a steady state. Health care supply in rural areas and research spillovers from other states and from nonagricultural sectors are found to have significant impacts on the productivity growth rate in both the short and the long run. These results suggest a richer set of opportunities for policy makers to enhance productivity growth than previously considered.
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Document Type: Research Article

Affiliations: 1: School of Economic Sciences, Washington State University, Pullman, WA 99164-6210, USA 2: Economic Research Service, US Department of Agriculture, Washington, DC, USA

Publication date: 2011-01-01

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