Agricultural TFP: new results from 2017 Census

Abstract

The objective of this work was to estimate the total factor productivity (TFP) for the evolution of the agricultural TFP of the Brazilian agriculture (permanent and temporary crops) over the period 1995-2017, using a translog production function with panel data, given the availability of the most recent Census data. The TFP effect was subdivided into technical change, allocative component, scale components, technical inefficiency, and random shocks. For the analyzed states, the TFP growth in the last decade (2006 to 2017) was higher than the observed one in the previous decade (1995 to 2006). The study also indicates that the TFP growth was positive, in general, for the analyzed states and for the overall country from 1995 to 2017.