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Project Description

Summary:  View help for Summary We study the effects of the adoption of new agricultural technologies on structural transformation. To guide empirical work, we present a simple model where the effect of agricultural productivity on industrial development depends on the factor-bias of technical change. We test the predictions of the model by studying the introduction of genetically engineered soybean seeds in Brazil, which had heterogeneous effects on agricultural productivity across areas with different soil and weather characteristics. We find that technical change in soy production was strongly labor-saving and led to industrial growth, as predicted by the model.

Scope of Project

JEL Classification:  View help for JEL Classification
      J43 Agricultural Labor Markets
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
      O33 Technological Change: Choices and Consequences; Diffusion Processes
      Q15 Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
      Q16 Agricultural R&D; Agricultural Technology; Biofuels; Agricultural Extension Services


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