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Agricultural Productivity and Structural Transformation: Evidence from Brazil, American Economic Review

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.

Type

Article

Author(s)

Paula Bustos, Bruno Caprettini, Jacopo Ponticelli

Date Published

2016

Citations

Bustos, Paula, Bruno Caprettini, and Jacopo Ponticelli. 2016. Agricultural Productivity and Structural Transformation: Evidence from Brazil. American Economic Review. 106(6): 1320-1365.

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