Agricultural productivity and structural transformation: Evidence from Brazil

Paula Bustos, Bruno Caprettini, Jacopo Ponticelli

Research output: Contribution to journalArticlepeer-review

56 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)1320-1365
Number of pages46
JournalAmerican Economic Review
Volume106
Issue number6
DOIs
StatePublished - Jun 2016

ASJC Scopus subject areas

  • Economics and Econometrics

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