Total Factor Productivity in the Peruvian Agriculture: Estimation and Determinants

• Autores: Galarza, Francisco B., Díaz, J. Guillermo
• Formato: artículo
• Fecha de Publicación: 2015
• Institución: Pontificia Universidad Católica del Perú
• Repositorio: Revistas - Pontificia Universidad Católica del Perú
• Lenguaje: español
• OAI Identifier: oai:revistaspuc:article/14672
• Enlace del recurso: http://revistas.pucp.edu.pe/index.php/economia/article/view/14672
• Nivel de acceso: acceso abierto
• Materia: Total Factor Productivity; Agriculture; Peru

In this article, we propose an estimation of the agriculture productivity using micro data forPeru. The method used builds on recent production function’s estimation techniques developed for panel data (e.g., Gandhi et al., 2013) but using cross-section data. Data constraints urge us to impose functional forms for the estimation. In particular, we choose the constant elasticity of substitution function, which is more flexible that other functions used by prior literature in Peru (such as the Cobb-Douglas). We find no evidence of the existence of increasing returns to scale in the Peruvian agriculture, and that the productivity is positively correlated with age, sex, andeducation, and negatively correlated with the farming unit’s acreage and market power.