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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Agricultural productivity and structural transformation : evidence from Brazil
Organization Unit
  • Paula Bustos
  • Bruno Caprettini
  • Jacopo Ponticelli
  • English
Institution University of Chicago, Booth School of Business
Series Name Fama-Miller Working Paper, Chicago Booth Research Papers
Number 14-07
Number of Pages 50
Date 2015
Abstract Text 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 led to industrial growth, as predicted by the model.
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Keywords Agricultural productivity, structural transformation, industrial development, labor saving technical change, genetically engineered soy
Additional Information Revised version