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World agricultural convergence.

Lingran Yuan1, Shurui Zhang1, Shuo Wang1

  • 1Department of Agricultural Economics and Management, School of Public Affairs, Zhejiang University, Hangzhou, China.

Journal of Productivity Analysis
|April 5, 2021
PubMed
Summary
This summary is machine-generated.

World agricultural convergence has not occurred. This study suggests international trade, irrigation, and structural transformation can improve farming efficiency and reduce global disparities.

Keywords:
Convergence TestsProductivity and EfficiencyRegional Catch-upStochastic Frontier AnalysisWorld Agricultural Convergence

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Area of Science:

  • Agricultural Economics
  • Development Economics
  • Econometrics

Background:

  • Global agricultural productivity shows significant disparities.
  • Understanding convergence patterns is crucial for economic development.
  • Previous studies have not fully addressed the nuances of agricultural efficiency across nations.

Purpose of the Study:

  • To determine if world agricultural convergence has occurred.
  • To identify factors that can fulfill the goal of agricultural convergence.
  • To analyze the degree of convergence across different country groups.

Main Methods:

  • Introduced a model averaging method combining parametric and semi-parametric Stochastic Frontier Analysis (SFA) models.
  • Estimated technical efficiency using advanced econometric techniques.
  • Employed three types of convergence tests on a balanced panel of 126 countries (1970-2014).

Main Results:

  • Empirical evidence indicates that world agricultural convergence has not occurred.
  • Significant efficiency gaps persist among different country groups.
  • Analysis revealed specific country groups exhibiting distinct convergence patterns.

Conclusions:

  • The study highlights the absence of global agricultural convergence.
  • International trade, irrigation systems, and structural transformation are identified as key drivers for future agricultural efficiency improvements.
  • Policy recommendations focus on diminishing the efficiency gap through strategic interventions.