An Analysis of Agricultural Total Factor Productivity Growth and Its Determinants in Bolivia

This paper analyzes trends in agricultural total factor productivity in Bolivia between 2008 and 2015 and the factors driving these trends using national agricultural surveys. On balance, the findings suggest that agricultural total factor productivity increased by 1.8% annually between 20082015. Among productive inputs, land shows the largest marginal effect on the value of agricultural production. Regarding temperature shocks, the study finds that each additional harmful degree day during the growing season is associated, on average, with a 9.8% decrease in the value of agricultural output. With regards to policy drivers, no statistically significant effect of land titling within the last two years is detected on productivity. Public irrigation infrastructure has a positive effect on productivity, though its magnitude decreases with rising incidence of precipitation. These findings underscore the importance of continuing to invest public resources efficiently in infrastructure that can boost agricultural productivity and prioritize investments targeting regions with the lowest productivity growth rates and with the smallest share of land and workers.