U.S. Agriculture, 1960-96: A Multilateral Comparison of Total Factor Productivity

摘要

This study provides estimates of the growth and relative levels of productivityfor the 48 contiguous States for the period 1960 to 1996. For the full 1960-96 period, every State exhibits a positive and generally substantial average annual rate of productivity growth. There is considerable variance, however. The wide disparity in growth rates resulted in substantial changes in the rank order of States. For each year, the authors calculate the coefficient of variation of productivity levels. The authors use these coefficients to show that the range of levels of productivity has narrowed over time, although the pattern of convergence was far from uniform. The fact that some States grew faster than others and yet the cross section dispersion decreased implies that the States that grew most rapidly were those with lower initial levels of productivity. This result in consistent with Gerschenkron's notion of the advantage of relative backwardness. The States that were particularly far behind the productivity leaders had the most to gain from the diffusion of technical knowledge and proceeded to grow most rapidly. The authors also observe a positive relation between capital accumulation and productivity growth, implying embodiment of technology in capital.