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Business and Economics > Production and Operations Management

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Cover IMF Working Papers
Importing Inputs for Climate Change Mitigation: The Case of Agricultural Productivity
Mr. Rodrigo Garcia-Verdu
,
Alexis Meyer-Cirkel
,
Akira Sasahara
, and
Hans Weisfeld
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:
WP; growth rate; dummy variable; simple average; Agricultural Productivity; TFP; Imported Inputs; Weather Shocks; Climate Change Mitigation; LICs; TFP level; TFP growth rate; agricultural TFP; productivity measure TFP; rainfalls increase TFP; Total factor productivity; Agricultural sector; Personal income; Agricultural production; Global