Title

Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

5-2000

Journal or Book Title

American Journal of Agricultural Economics

Volume

82

Issue

2

First Page or Article ID Number

370

Last Page

388

DOI

10.1111/0002-9092.00032

Abstract

State crop, livestock,and aggregate agricultural total factor productivity (TFP) data, 1950–82, are examined for evidence of convergence to a single TFP level (σ-convergence) or to a steady state rate of growth (β- or conditional convergence). Our empirical results do not support σ-convergence but do support β-convergence. The rate of β -convergence is variable and depends on research and development (R&D) spillins from other states,private R&D, and farmers' schooling. The finding of strong positive interstate spillover effects implies that independent state planning of agricultural research is inefficient and cooperation across states boundaries including establishment of new political jurisdictions for financing public agricultural research can enhance efficiency.

JEL Classification

D24, O33, Q11

Comments

This is a staff paper of an article from American Journal of Agricultural Economics 82 (2000): 370, doi: 10.1111/0002-9092.00032.