Scandinavian Working Papers in Economics
Working Paper Series,
Research Institute of Industrial Economics
No 1181: Agricultural Trade Reform, Reallocation and Technical Change: Evidence from the Canadian Prairies
Mark Brown, Shon Ferguson () and Crina Viju
Additional contact information
Mark Brown: Statistics Canada, Postal: Ottawa, Canada
Shon Ferguson: Research Institute of Industrial Economics (IFN)
Crina Viju: Institute of European, Russian and Eurasian Studies, Postal: Carleton University, Ottawa, Canada
Abstract: We decompose the impact of trade reform on technology adoption and land use to study how aggregate changes were driven by reallocation versus within-farm adaptation. Using detailed census data covering over 30,000 farms in Alberta, Saskatchewan and Manitoba, Canada we find a range of new results. We find that the reform-induced shift from producing low-value to high-value crops for export, the adoption of new seeding technologies and reduction in summer fallow observed at the aggregate level between 1991 and 2001 were driven mainly by the within-farm effect. In the longer run, however, reallocation of land from shrinking and exiting farms to growing and new farms explains more than half of the aggregate changes in technology adoption and land use between 1991 and 2011.
Keywords: Agricultural Trade Liberalization; Export Subsidy; Technical Change; Farm Size; Firm Heterogeneity
JEL-codes: F14; O13; Q16; Q17; Q18
35 pages, September 26, 2017
Full text files
wp1181.pdf
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