Crop Selection and International Differences in Aggregate Agricultural Productivity

Author/Editor:

Jorge A Alvarez ; Claudia Berg

Publication Date:

August 16, 2019

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

A large share of cross-country differences in productivity is explained by differences in agricultural productivity. Using a combination of sub-national agricultural statistics and geospatial datasets on crop-specific potential yields, we study the main drivers of this variation from a macroeconomic perspective. We find that differences in geographically-induced crop-specific comparative advantages can explain a substantial share of the variation in yields across the world. Data reveal substantial gaps between potential and observed yields in most countries. When decomposing these within country gaps, we find that crop selection gaps are on average larger than those induced by input usage alone. The results highlight the importance of understanding the interaction of geography and crop selection drivers in assessing aggregate agricultural productivity differences.

Series:

Working Paper No. 2019/179

Subject:

English

Publication Date:

August 16, 2019

ISBN/ISSN:

9781498326636/1018-5941

Stock No:

WPIEA2019179

Pages:

35

Please address any questions about this title to publications@imf.org