Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity

51 Pages Posted: 8 Apr 2019

See all articles by Rodrigo García-Verdú

Rodrigo García-Verdú

International Monetary Fund

Alexis Meyer-Cirkel

Goethe University Frankfurt

Akira Sasahara

Keio University

Hans Weisfeld

International Monetary Fund (IMF)

Date Written: February 2019

Abstract

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

García-Verdú, Rodrigo and Meyer-Cirkel, Alexis and Sasahara, Akira and Weisfeld, Hans, Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity (February 2019). IMF Working Paper No. 19/26, Available at SSRN: https://ssrn.com/abstract=3367409

Rodrigo García-Verdú (Contact Author)

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Alexis Meyer-Cirkel

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Akira Sasahara

Keio University ( email )

2-15-45 Mita, Ninato-ku
Tokyo 1088345
Japan

Hans Weisfeld

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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