Resource information
Spatial disparity in incomes and
productivity is apparent across and within countries. Most
studies of the determinants of such differences focus on
cross-country comparisons or location choice among firms.
Less studied are the large differences in agricultural
productivity within countries related to concentrations of
rural poverty. For policy, understanding the determinants of
this geography of agricultural productivity is important,
because strategies to reduce poverty often feature
components designed to boost regional agricultural incomes.
Census and endowment data for Ecuador are used to estimate a
model of endogenous technology choice to explain large
regional differences in agricultural output and factor
productivity. A composite-error estimation technique is used
to separate systemic determinants from idiosyncratic
differences. Simulations are employed to explore policy
avenues. The findings suggest a differentiation between the
types of policies that promote growth in agriculture
generally and those that are more likely to assist the rural poor.
