A THEORETICAL DEVELOPMENT AND EMPIRICAL TEST ON THE CONVERGENCE OF AGRICULTURAL PRODUCTIVITY IN THE USA

This study explores the evidence of convergence in the U.S agriculture sector by using the state level total factor productivity (TFP) data. The empirical investigation conducted in this study does not find any evidence of convergence while looking at the state level TFP. However, there seems to be some support for convergence at the regional level. Parametric and nonparametric models indicate significant role of human capital in explaining the regional discrepancies in agriculture productivity across states.