Welfare Effects of Technological Convergence in Processed Food Industries

We develop a monopolistic competition model to investigate effects of international technological convergence on factor rewards, output composition, and welfare. Comparative static analysis indicates technological convergence improves the follower's—but impairs the leader's—international competitiveness. The leader's welfare improves unambiguously; the follower's welfare depends on the relative strength of convergence's income and terms-of-trade effects. We use data from seventeen food industries in thirty countries, 1993–2001, to test these analytical predictions. Evidence of convergence is found in thirteen of seventeen industries. Convergence lifts followers' relative wages and global value-added shares. Followers benefit from convergence's positive income effect. Leaders benefit from higher terms of trade.     

University Life Science Programs and Agricultural Biotechnology

We examine sources of productivity in bioscience research and graduate training in U.S. universities. For this purpose, we first identify the scientific publications cited on agricultural biotechnology patents, and then trace the citations back to the universities producing the cited research. Insight is thus gained into the university investments that demonstrably influence useful technology. Life-science budget allocations substantially affect both graduate education and technology-relevant science. Graduate training shows decreasing returns to budget scale, while productive research shows decreasing returns in the short run but increasing returns in the long run. Training is a weak substitute for research, while research is a moderate complement to training.     

Investment and Productivity in Canadian and U.S. Food Manufacturing

A restricted cost function model of Canadian and US. food manufacturing shows that productivity growth rates in Canada have remained well below those in the United States for the past decade and a half_: At mean factor prices, output, and capital quantities, processing costs would be 22% lower in the U.S. than in Canada. Technical change in both countries has been labor-saving and material-using, although slightly more so in the US. than in Canada. The labor-saving bias of technical improvements puts Canada at a disadvantage to its southern neighbor, since food manufacturing wages in Canada tend to be lower and material prices higher than in the United States. Enhancing its competitiveness will require that Canada reduce raw food and packaging costs or invest more in research and development .
L'estimation d'une function constraint de coût démontre que le taux de productivité du secteur de la transformation des aliments et boissons au Canada est demeuré inférieur à celui des Etats-Unis depuis une quinzaine d'années. En effet, à la moyenne du prix des intrants, du stock de capital et de la quantité produite, le coût de production américain est de 22 % inférieur à celui du Canada. Dans les deux pays, le changement technologique a permis de substituer le matériel à la main-d'oeuvre, et ceci de façon plus prononcée aux Etats-Unis. En bout de ligne, ceci désavantage le secteur canadien des aliments et boissons puisque les salaires sont généralement inférieurs au Canada alors que le matériet est plus coûteux. Le Canada pourrait améliorer sa compétitivité face aux Etats-Unis en réduisant le prix des denrées et des entrées intermédiaires ou en augmentant l'investissement dans la recherche et le développement .     

Public Investment and Industry Incentives in Life-Science Research

Life-science research has shifted rapidly from the public to the private sector, raising questions about government's remaining role. We shed light on the issue by employing a dynamic investment-response model to examine the public's impact on industry life-science research effort and success. We find that government expenditures in both basic biological research and agricultural and medical science create substantial spillovers for private firms. The spillovers are, unfortunately, partly nullified by government competition for scarce research inputs. Yet even after accounting for such competition, public investment has been strongly complementary to private investment. Indeed, opportunities created through public research are the principal source of growth in industry life sciences.     

Agricultural policy and productivity: evidence from Brazilian censuses

Brazil's economic strategy has shifted hesitatingly during the last several decades from one of producer protection to trade competitiveness. Exploiting the variations these shifts have afforded, we use a sequence of decennial agricultural censuses to examine Brazilian policy implications for agricultural competitiveness and efficiency. Total factor productivity is decomposed into best‐technology and efficiency elements, each subject to policy influence. We find technology growth, at 4.5% per annum, to have been extraordinarily high, particularly in the south. But because productivity among average producers has fallen rapidly behind that on the technical frontier, total productivity growth has been a much more modest 2.6% per year. Public agricultural research programs most benefit the country's technological leaders, widening the gap between frontier and average producer. Credit, education, and road construction policies instead narrow that gap. Credit and road programs especially enhance efficiency in the south, where efficiency losses have been greatest.     

Factor Use and Productivity Change in the Alcoholic Beverage Industries

Technology structure and change in the beer, wine, and spirits industries are examined here in a dual cost framework. Productivity growth in these industries has been strong and uninterrupted for the past four decades, outstripping that in the general food sector. Scale economies continue to be significant in brewing and distilling but are weak to nonexistent in winemaking. Substitution between raw materials and value-adding (labor and capital) inputs is high, implying that any reversal in factor price trends likely will bring substantial changes to production processes. Despite recent rapid increases in relative capital prices, technical change has shifted capital-material expansion paths toward capital, suggesting that new equipment is designed for its ability to save on raw material and packaging cost.