Analysis of agricultural productivity in Paraguay: a micro econometric approach

This paper investigates the micro determinants of agricultural productivity at a farm level in Paraguay, using the Permanent Household Survey (EPHC) from 2017 to 2019. We estimate an agricultural production function where the main determinants of output are land, machinery, labor, and purchased vari...

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Main Authors: Lema, Rolando Daniel, Gatti, Nicolas
Format: Conferencia
Language:Inglés
Published: International Association of Agricultural Economists 2025
Subjects:
Online Access:http://hdl.handle.net/20.500.12123/23737
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author Lema, Rolando Daniel
Gatti, Nicolas
author_browse Gatti, Nicolas
Lema, Rolando Daniel
author_facet Lema, Rolando Daniel
Gatti, Nicolas
author_sort Lema, Rolando Daniel
collection INTA Digital
description This paper investigates the micro determinants of agricultural productivity at a farm level in Paraguay, using the Permanent Household Survey (EPHC) from 2017 to 2019. We estimate an agricultural production function where the main determinants of output are land, machinery, labor, and purchased variable inputs using Cobb-Douglas and a Translog production frontier. Econometric results show that the most productive areas such as Paraguari, Guaira, Caaguazu, and Caazapa from Southeastern Paraguay are the most efficient. These areas have more infrastructure and have traditionally been the main agricultural areas. We also see that Western Paraguay, predominantly devoted to livestock, is less efficient. More efficient farmers have observed a slowdown in the growth rate of Technical Efficiency (TE) relative to districts such as Ñembucu, Itapúa, or Alto Paraná. While the latter areas had lower TE, Total Factor Productivity (TFP) growth is higher than in the main production areas. The difference between regions is probably due to places that lagged previously and received most of the investments in the last years. From a policy perspective, Paraguay can obtain productivity improvements from the intensification of agriculture rather than incorporating new lands. Considering regional specialization in agriculture and livestock, public and private investment should boost farmers' comparative advantage by region.
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institution Instituto Nacional de Tecnología Agropecuaria (INTA -Argentina)
language Inglés
publishDate 2025
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spelling INTA237372025-09-09T14:42:52Z Analysis of agricultural productivity in Paraguay: a micro econometric approach Lema, Rolando Daniel Gatti, Nicolas Productivity Economics Stochastic Models Productividad Economía Paraguay Modelos Estocásticos Stochastic Frontier Approach Stochastic Frontier Analysis Fronteras Estocásticas This paper investigates the micro determinants of agricultural productivity at a farm level in Paraguay, using the Permanent Household Survey (EPHC) from 2017 to 2019. We estimate an agricultural production function where the main determinants of output are land, machinery, labor, and purchased variable inputs using Cobb-Douglas and a Translog production frontier. Econometric results show that the most productive areas such as Paraguari, Guaira, Caaguazu, and Caazapa from Southeastern Paraguay are the most efficient. These areas have more infrastructure and have traditionally been the main agricultural areas. We also see that Western Paraguay, predominantly devoted to livestock, is less efficient. More efficient farmers have observed a slowdown in the growth rate of Technical Efficiency (TE) relative to districts such as Ñembucu, Itapúa, or Alto Paraná. While the latter areas had lower TE, Total Factor Productivity (TFP) growth is higher than in the main production areas. The difference between regions is probably due to places that lagged previously and received most of the investments in the last years. From a policy perspective, Paraguay can obtain productivity improvements from the intensification of agriculture rather than incorporating new lands. Considering regional specialization in agriculture and livestock, public and private investment should boost farmers' comparative advantage by region. Centro de Investigación en Economía y Prospectiva, INTA Fil: Lema, Rolando Daniel. Instituto Nacional de Tecnología Agropecuaria (INTA). Centro de Investigación en Economía y Prospectiva (CIEP); Argentina Fil: Lema, Rolando Daniel. Universidad del Centro de Estudios Macroeconómicos de Argentina; Argentina Fil: Gatti, Nicolás. Instituto Nacional de Tecnología Agropecuaria (INTA). Centro de Investigación en Economía y Prospectiva (CIEP); Argentina Fil: Gatti, Nicolás. Cornell University. Smithsonian Institution; Estados Unidos 2025-09-09T14:27:36Z 2025-09-09T14:27:36Z 2021-08 info:ar-repo/semantics/documento de conferencia info:eu-repo/semantics/conferenceObject info:eu-repo/semantics/publishedVersion http://hdl.handle.net/20.500.12123/23737 Lema, D. & Gatti, N. (17 to 31 August 2021). Analysis of agricultural productivity in Paraguay: a micro econometric approach. 31st Triennial International Conference of Agricultural Economists (ICAE), online. eng info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf Paraguay .......... (nation)(World, South America) 1000055 start=2017; end=2019 International Association of Agricultural Economists 31st International Conference of Agricultural Economists, 17-31 August 2021 (online)
spellingShingle Productivity
Economics
Stochastic Models
Productividad
Economía
Paraguay
Modelos Estocásticos
Stochastic Frontier Approach
Stochastic Frontier Analysis
Fronteras Estocásticas
Lema, Rolando Daniel
Gatti, Nicolas
Analysis of agricultural productivity in Paraguay: a micro econometric approach
title Analysis of agricultural productivity in Paraguay: a micro econometric approach
title_full Analysis of agricultural productivity in Paraguay: a micro econometric approach
title_fullStr Analysis of agricultural productivity in Paraguay: a micro econometric approach
title_full_unstemmed Analysis of agricultural productivity in Paraguay: a micro econometric approach
title_short Analysis of agricultural productivity in Paraguay: a micro econometric approach
title_sort analysis of agricultural productivity in paraguay a micro econometric approach
topic Productivity
Economics
Stochastic Models
Productividad
Economía
Paraguay
Modelos Estocásticos
Stochastic Frontier Approach
Stochastic Frontier Analysis
Fronteras Estocásticas
url http://hdl.handle.net/20.500.12123/23737
work_keys_str_mv AT lemarolandodaniel analysisofagriculturalproductivityinparaguayamicroeconometricapproach
AT gattinicolas analysisofagriculturalproductivityinparaguayamicroeconometricapproach