Agricultural Trade Reform, Reallocation and Technical Change: Evidence from the Canadian Prairies

William Brown (), Shon Ferguson and Crina Viju

No 23857, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We decompose the impact of trade reform on technology adoption and land use to study how aggregate changes were driven by reallocation versus within-farm adaptation. Using detailed census data covering over 30,000 farms in Alberta, Saskatchewan and Manitoba, Canada we find a range of new results. We find that the reform-induced shift from producing low-value to high-value crops for export, the adoption of new seeding technologies and reduction in summerfallow observed at the aggregate level between 1991 and 2001 were driven mainly by the within-farm effect. In the longer run, however, reallocation of land from shrinking and exiting farms to growing and new farms explains more than half of the aggregate changes in technology adoption and land use between 1991 and 2011.

JEL-codes: F14 O13 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2017-09
New Economics Papers: this item is included in nep-agr and nep-eff
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Published as Intranational Trade Costs, Reallocation, and Technical Change: Evidence from a Canadian Agricultural Trade Policy Reform , Mark Brown, Shon M. Ferguson, Crina Viju-Miljusevic. in Agricultural Productivity and Producer Behavior , Schlenker. 2019

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Working Paper: Agricultural Trade Reform, Reallocation and Technical Change: Evidence from the Canadian Prairies (2017)
Working Paper: Agricultural Trade Reform, Reallocation and Technical Change: Evidence from the Canadian Prairies (2017)
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