TY - JOUR
T1 - Agricultural productivity and structural transformation
T2 - Evidence from Brazil
AU - Bustos, Paula
AU - Caprettini, Bruno
AU - Ponticelli, Jacopo
PY - 2016/6
Y1 - 2016/6
N2 - 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.
AB - 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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U2 - 10.1257/aer.20131061
DO - 10.1257/aer.20131061
M3 - Article
AN - SCOPUS:84978877128
SN - 0002-8282
VL - 106
SP - 1320
EP - 1365
JO - American Economic Review
JF - American Economic Review
IS - 6
ER -