Using data envelopment analysis to measure international agricultural efficiency and productivity

Numerous methods for measuring multifactor productivty have benn used by economists. This report uses a recently developed approach, data envelopment analysis, to measure productivity. This method can be used not only to calculate productivity changes but also to divide productivity measures the efficiency with which resources are used. Technical change measures changes in output arising from improved technology. In this report, relative efficiency measures and multifactor productivity measures are calculated for the agricultural sectors of 77 countires. Analysis shows that multiactor productivity of the agricultural sector has risen in most developed countires and fallen in many developing countries over the past two decades. Adoption of input-intenisve technology by developing countires may have offset productivity gains from improved yields and improved labor productivity