An Empirical Investigation of Productivity Spillovers along the Agricultural Supply Chain

Ag TFP has compared very favorably to TFP growth in most other U. [...] sectors Lack of studies analyzing productivity spillovers between the agricultural sector and other economic sectors UnDite opra Drtempearnttm oefn tE Ncaomnoe mHeicrse 2 Objectives Identify productivity linkages between the agricultural sector and 62 other sectors of the U. [...] economy Measure short- and long-run productivity spillovers from and to the agricultural sector TFP Labor partial productivity (LPP) Capital partial productivity (KPP) UnDite opra Drtempearnttm oefn tE Ncaomnoe mHeicrse 3 Data Annual productivity measures over 1947-2014 from KLEMS-type database by Jorgenson, Ho, and Samuels (2017) TFP, LPP, and KPP Ag sector and 62 Other sectors in the U. [...] National Income and Product Accounts 62 Other sectors classified as • Ag-related (10 sectors) • Non-ag-related (52 sectors) Ag productivity series from USDA to verify robustness of results UnDite opra Drtempearnttm oefn tE Ncaomnoe mHeicrse 4 Estimation Methods Time-series analysis of pair-wise association between productivity in ag sector (Ag) and other sector (Other): • Total Factor Productivity. [...] TFP data for agriculture and 62 other sectors over 1947-2014 shows that Increases in Ag TFP caused long-lasting increases (reductions) in the TFP of 15% (5%) of 62 other sectors Shocks in the TFP of 15% other sectors had long-lasting spillover effects into Ag TFP (3% with same-sign, and 11% with opposite-sign) Labor and capital partial productivities (LPP and KPP) in agriculture had little associa.