Stylized Facts About Economics of Agriculture

• Supply

• • Advanced economies,
  • • Historically relatively high productivity growth (TFP growth ~ 1-1.5%)
    • Stable land use and employment
    • Capital intensive
    • Labor productivity is not much different from labor productivity of industries’
  • EMEs and developing economies,
  • • Historically relatively low productivity growth (TFP growth < 1%)
    • Stable or decreasing land use
    • Decreasing employment
    • Labor intensive
    • Labor productivity is much lower than labor productivity of industries’

• Prices

• • Upto early 2000`s relative price of food , since than