Agricultural productivity and structural transformation. Evidence from Brazil

Produced by: 
Barcelona Graduate School of Economics
Available from: 
August 2013
Paper author(s): 
Paula Bustos
Bruno Caprettini
Jacopo Ponticelli
Agricultural and Natural Resource Economics

We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil, which had heterogeneous effects on agricultural productivity across areas with different soil and weather characteristics. We find that technical change in soy production was strongly labor saving and lead to industrial growth, as predicted by the model.


Research section: 
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