Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity
51 Pages Posted: 8 Apr 2019
Date Written: February 2019
This paper estimates agricultural total factor productivity (TFP) in 162 countries between 1991 and 2015 and aims to understand sources of cross-country variations in agricultural TFP levels and its growth rates. Two factors affecting agricultural TFP are analyzed in detail - imported intermediate inputs and climate. We first show that these two factors are independently important in explaining agricultural TFP - imported inputs raise agricultural TFP; and higher temperatures and rainfall shortages impede TFP growth, particularly in low-income countries (LICs). We also provide a new evidence that, within LICs, those with a higher import component of intermediate inputs seem to be more shielded from the negative impacts of weather shocks.
Keywords: Price indexes, Economic growth, Real effective exchange rates, Total factor productivity, Capital stocks, Agricultural Productivity, TFP, Imported Inputs, Weather Shocks, Climate Change Mitigation, LICs., high-income country, low share, value-added, middle-income country
JEL Classification: O13, O47, O54, O56, E01, O24, L31, O4, E2
Suggested Citation: Suggested Citation