Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries

Improving agricultural total factor productivity is essential to achieving the high-quality and sustainable development of agriculture. As major global agricultural producers, the G20 countries play an important role in agricultural product trade and development. As such, it is well-positioned to pl...

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Main Authors: Jialong Xu, Yue Wang, Xing Zhao, Seth Etuah, Zhen Liu, Hui Zhu
Format: Article
Language:English
Published: Frontiers Media S.A. 2023-02-01
Series:Frontiers in Sustainable Food Systems
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fsufs.2023.1100038/full
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author Jialong Xu
Yue Wang
Xing Zhao
Seth Etuah
Zhen Liu
Hui Zhu
author_facet Jialong Xu
Yue Wang
Xing Zhao
Seth Etuah
Zhen Liu
Hui Zhu
author_sort Jialong Xu
collection DOAJ
description Improving agricultural total factor productivity is essential to achieving the high-quality and sustainable development of agriculture. As major global agricultural producers, the G20 countries play an important role in agricultural product trade and development. As such, it is well-positioned to play a positive role in improving agricultural total factor productivity. This paper uses the DEA-Malmquist index method to measure agricultural total factor productivity (TFP) in G20 countries from 2010 to 2019, and analyzes the impact of agricultural trade on TFP using the two-way fixed effects model. It finds that (1) the main source of agricultural TFP growth in G20 countries is technical progress, while the effect of technical efficiency on agricultural TFP is not obvious. (2) Agricultural trade can significantly improve agricultural TFP growth in G20 countries, and the effect is more obvious in developed countries. From the perspective of trade flow, the positive effect of export trade on agricultural TFP is stronger. (3) The institutional environment strengthens the improvement effect of agricultural trade on agricultural TFP. Thus, this study not only provides valuable insight into the relationship between agricultural trade and agricultural productivity, but also offers a strong argument in favor of the formulation of relevant policies to improve agricultural productivity and promote a more sustainable agricultural sector.
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spelling doaj.art-15ed0f536c3e4a8a860b0b27f85303a12023-02-16T11:15:53ZengFrontiers Media S.A.Frontiers in Sustainable Food Systems2571-581X2023-02-01710.3389/fsufs.2023.11000381100038Can agricultural trade improve total factor productivity? Empirical evidence from G20 countriesJialong Xu0Yue Wang1Xing Zhao2Seth Etuah3Zhen Liu4Hui Zhu5Business School, The University of Queensland, Brisbane, QLD, AustraliaSchool of Business, Nanjing Normal University, Nanjing, ChinaSchool of Business, Nanjing Normal University, Nanjing, ChinaDepartment of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi, GhanaSchool of Business, Nanjing Normal University, Nanjing, ChinaJiyang College, Zhejiang Agriculture and Forestry University, Zhuji, ChinaImproving agricultural total factor productivity is essential to achieving the high-quality and sustainable development of agriculture. As major global agricultural producers, the G20 countries play an important role in agricultural product trade and development. As such, it is well-positioned to play a positive role in improving agricultural total factor productivity. This paper uses the DEA-Malmquist index method to measure agricultural total factor productivity (TFP) in G20 countries from 2010 to 2019, and analyzes the impact of agricultural trade on TFP using the two-way fixed effects model. It finds that (1) the main source of agricultural TFP growth in G20 countries is technical progress, while the effect of technical efficiency on agricultural TFP is not obvious. (2) Agricultural trade can significantly improve agricultural TFP growth in G20 countries, and the effect is more obvious in developed countries. From the perspective of trade flow, the positive effect of export trade on agricultural TFP is stronger. (3) The institutional environment strengthens the improvement effect of agricultural trade on agricultural TFP. Thus, this study not only provides valuable insight into the relationship between agricultural trade and agricultural productivity, but also offers a strong argument in favor of the formulation of relevant policies to improve agricultural productivity and promote a more sustainable agricultural sector.https://www.frontiersin.org/articles/10.3389/fsufs.2023.1100038/fullagricultural tradeagricultural total factor productivitytrade flowinstitutional environmentG20 countries
spellingShingle Jialong Xu
Yue Wang
Xing Zhao
Seth Etuah
Zhen Liu
Hui Zhu
Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries
Frontiers in Sustainable Food Systems
agricultural trade
agricultural total factor productivity
trade flow
institutional environment
G20 countries
title Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries
title_full Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries
title_fullStr Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries
title_full_unstemmed Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries
title_short Can agricultural trade improve total factor productivity? Empirical evidence from G20 countries
title_sort can agricultural trade improve total factor productivity empirical evidence from g20 countries
topic agricultural trade
agricultural total factor productivity
trade flow
institutional environment
G20 countries
url https://www.frontiersin.org/articles/10.3389/fsufs.2023.1100038/full
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