Total factor productivity and impacts of public policies

Abstract

This note seeks to analyze the impacts of investments in research, rural credit, exports, and exchange ratio on the total factor productivity (TFP), for the period from 2000 to 2019. The analysis results make it possible to verify which policies can have the greatest impacts, which may contribute for the choosing of a safer task. The period from 2000 to 2019 showed a strong agriculture growth. The estimated average growth rate of the product was high, reaching 3.85% per year, involving crop, livestock, and animal production. Except for some fluctuation, the growth occurred persistently. If we take the decade of 2000, the growth was even greater, 5.18% per year. For the period 2000-2019, the greatest positive impact on productivity growth resulted from the exchange ratio, followed by the spending on research, exports, and rural credit.