Brazilian Agricultural Productivity

Utrecht School of Economics

Brazilian Agricultural Productivity

An analysis of total factor productivity and sustainable development

Longbing Yu (3677907) Yang Liu (3685063) Supervisor: Julia Swart Fourth period 2012-2013

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Table of Content

1. Introduction ........................................................................................................................... 2 2. Literature review ................................................................................................................... 4 3. Total factor productivity of Brazilian agriculture.................................................................. 6 3.1 TFP measurement ............................................................................................................ 7 3.2 Output growth rate........................................................................................................... 8 3.3 Input growth rate ............................................................................................................. 9 3.4 Cost of input share ......................................................................................................... 14 3.5 The result of Brazilian agricultural TFP ........................................................................ 15 4. The development of Brazil modern agriculture support policies ........................................ 18 4.1 Low interest rate credit policy ....................................................................................... 18 4.2 Price and subsidy policy ................................................................................................ 20 4.3 Scale operation of land policy ....................................................................................... 21 4.4 Ecological agricultural policy........................................................................................ 22 4.5 Cooperatives and intermediary organization policy...