The agricultural productivity gap: A global vision

ABSTRACT Productivity in agriculture tends to grow slower than in other sectors. This is a stylized fact that has resulted in a persistent productivity gap, generalized over time and across countries. This paper explores the evolution of this gap from an international perspective, identifying patterns in both developed and developing countries. Empirical regularities are discussed in the light of a literature review on the causes of the gap and its socio-economic effects. Reflections on the nature of the productivity gap often merge with considerations on its social implications and on the policies that should be implemented to deal with it. We refer to this wider political economy issue as the ‘farm problem’, and argue that it has not been given a satisfactory solution, neither in rich nor in developing countries. Although in some industrialized countries the discharging of the countryside has acted as a major source of convergence, there has not been a general reduction in the productivity gap between agriculture and the rest of the economy worldwide, nor are there compelling reasons to assume that this will happen in the future.