The fundamental causes of economic growth: a comparative analysis of the total factor productivity growth of European agriculture, 1950-2005

Resumo

In recent decades, the debate on economic growth has largely focused the role-played by institutions, geography, trade, and culture. In line with this concern, this study analyses the underlying causes of agricultural productivity growth in Europe in the second half of the twentieth century. To achieve this objective, a calculation of the Total Factor Productivity growth in European agriculture is made and an econometric model is proposed to determine the importance of these fundamental causes. Our study highlights that inclusive institutions, policies to support agriculture that do not discourage innovation, qualified human capital and a full openness to international trade are key factors for favouring growth of productivity in agriculture.