Levels of farm sector productivity: An international comparison

This article focuses on the relative levels of farm sector productivity for the United States and nine European countries for the period 1973 to 1993. At the beginning of the period, Belgium had the highest level of productiv ity relative to the United States at 1.689. Ireland had the lowest relative productivity at 0.759. By 1993, the range of levels of productivity had na rrowed significantly, from 0.709 for Ireland to 1.392 for the Netherlands. Further evidence of convergence can be seen in the coefficient of variation , which fell steadily from 0.261 in 1973 to 0.227 in 1993. Results based on regression analysis show a highly significant inverse relation between the rate of productivity convergence and the initial level of productivity, co nsistent with the "catch-up'' hypothesis. The results generally support the existence of a positive interaction between capital accumulation and produ ctivity growth, suggesting embodiment.