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Mr. Rodrigo Garcia-Verdu, Alexis Meyer-Cirkel, Akira Sasahara, and Hans Weisfeld
This paper estimates agricultural total factor productivity (TFP) in 162 countries between 1991 and 2015 and aims to understand sources of cross-country variations in agricultural TFP levels and its growth rates. Two factors affecting agricultural TFP are analyzed in detail – imported intermediate inputs and climate. We first show that these two factors are independently important in explaining agricultural TFP – imported inputs raise agricultural TFP; and higher temperatures and rainfall shortages impede TFP growth, particularly in low-income countries (LICs). We also provide a new evidence that, within LICs, those with a higher import component of intermediate inputs seem to be more shielded from the negative impacts of weather shocks.
Mr. Rodrigo Garcia-Verdu, Alexis Meyer-Cirkel, Akira Sasahara, and Hans Weisfeld

D + ϑ i t Im ϕ i t Im , where the weights are the share of domestic inputs to the total value of inputs, ϑ i t D = I i t D / ( I i t D + I i t I m )   a n d   θ i t I m = I i t I m / ( I i t D + I i t I m ) is the share of imported inputs. We argue that a higher share of imported inputs reduces TFP’s sensitivity to weather shocks. In other words, because higher temperatures reduce TFP, ∂A it /∂Temp it < 0, and rainfalls increase TFP, ∂A it /∂Temp it > 0, we have ∂ 2 A i t ∂ T e m p i t ∂ θ