Journal Article

Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research

Alan McCunn and Wallace E. Huffman

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 82, issue 2, pages 370-388
Published in print May 2000 | ISSN: 0002-9092
Published online May 2000 | e-ISSN: 1467-8276 | DOI: https://dx.doi.org/10.1111/0002-9092.00032
Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research

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  • Technological Change; Research and Development
  • Production and Organizations
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State crop, livestock,and aggregate agricultural total factor productivity (TFP) data, 1950–82, are examined for evidence of convergence to a single TFP level (σ-convergence) or to a steady state rate of growth (β- or conditional convergence). Our empirical results do not support σ-convergence but do support β-convergence. The rate of β -convergence is variable and depends on research and development (R&D) spillins from other states,private R&D, and farmers' schooling. The finding of strong positive interstate spillover effects implies that independent state planning of agricultural research is inefficient and cooperation across states boundaries including establishment of new political jurisdictions for financing public agricultural research can enhance efficiency.

Keywords: growth; convergence; productivity; research and development; spillins; public research; agriculture; states; D240; O330; Q110

Journal Article.  0 words. 

Subjects: Technological Change; Research and Development ; Production and Organizations ; Agricultural Economics

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