Technological progress in the Brazilian agriculture

Abstract We analyze technical progress in the Brazilian agriculture in the period 1976–2016. Output is production value and inputs are expenses on land, labor, and other inputs. Data Envelopment Analysis (DEA) measures are used to capture technological progress via efficiency analysis. Filtering the data with a moving average and fractional regression we identify four periods with distinct behavior of technical efficiency under constant or decreasing returns to scale. From 1976 to 1988 and from 1996 to 2007 technical efficiency decreases at statistically significant rates of −1.74% and −0.26% respectively. From 1989 to 1995 and from 2008 to 2016 efficiency increases at statistically significant rates of 1.53% and 1.75% respectively. Efficiency of input use varies in these periods and is computed as a byproduct of the DEA analysis. We observe a more efficient usage of land and other inputs. A parametric fit using adjusted efficient inputs indicate the relative elasticities of 40.5%, 38.5% and 21.0% for other inputs, land and labor, respectively. Technological progress increases 3.73% in the period 1976–1988, decreases 1,58% between 1989 and 1995, increases 0.17% in the period 1996–2007 and increases 1.01% between 2008 and 2016. Technological inputs are statistically significantly influential on total factor productivity as indicated by an infinite distributed lag model. The long run elasticity effect is 39.5%. The effect of investments (public) in agricultural research has a significant elasticity of 0.835.