Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data

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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Autores principales: Lema, Rolando Daniel, Gatti, Nicolas
Formato: Conferencia
Lenguaje:Inglés
Publicado: Asociación Argentina de Economía Política (AAEP) 2025
Materias:
Acceso en línea:http://hdl.handle.net/20.500.12123/23749
https://aaep.org.ar/works/works2021b/4485.pdf
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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
publishDateRange 2025
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publisherStr Asociación Argentina de Economía Política (AAEP)
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spelling INTA237492025-09-10T11:08:42Z Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data Lema, Rolando Daniel Gatti, Nicolas Productivity Economics Stochastic Models Agriculture Productividad Economía Paraguay Modelos Estocásticos Agricultura 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: Gatti, Nicolás. Instituto Nacional de Tecnología Agropecuaria (INTA). Centro de Investigación en Economía y Prospectiva (CIEP); Argentina 2025-09-10T11:04:43Z 2025-09-10T11:04:43Z 2021-11 info:ar-repo/semantics/documento de conferencia info:eu-repo/semantics/conferenceObject info:eu-repo/semantics/publishedVersion http://hdl.handle.net/20.500.12123/23749 https://aaep.org.ar/works/works2021b/4485.pdf Lema, D. & Gatti, N. (17-19 agosto 2021). Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data. LVI Reunión Anual de la Asociación Argentina de Economía Política (AAEP), Buenos Aires, Argentina. 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 Asociación Argentina de Economía Política (AAEP) LVI Reunión Anual de la Asociación Argentina de Economía Política (AAEP), 17-19 agosto 2021. Buenos Aires, Argentina.
spellingShingle Productivity
Economics
Stochastic Models
Agriculture
Productividad
Economía
Paraguay
Modelos Estocásticos
Agricultura
Stochastic Frontier Approach
Stochastic Frontier Analysis
Fronteras Estocásticas
Lema, Rolando Daniel
Gatti, Nicolas
Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data
title Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data
title_full Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data
title_fullStr Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data
title_full_unstemmed Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data
title_short Agricultural productivity in Paraguay: stochastic frontier estimation using rural household data
title_sort agricultural productivity in paraguay stochastic frontier estimation using rural household data
topic Productivity
Economics
Stochastic Models
Agriculture
Productividad
Economía
Paraguay
Modelos Estocásticos
Agricultura
Stochastic Frontier Approach
Stochastic Frontier Analysis
Fronteras Estocásticas
url http://hdl.handle.net/20.500.12123/23749
https://aaep.org.ar/works/works2021b/4485.pdf
work_keys_str_mv AT lemarolandodaniel agriculturalproductivityinparaguaystochasticfrontierestimationusingruralhouseholddata
AT gattinicolas agriculturalproductivityinparaguaystochasticfrontierestimationusingruralhouseholddata