Factors Driving Agricultural Productivity


This project consists of two parts. The first part provides an outline of the economic theories and methodology used by ABARE in the estimation of the productivity for the broadacre and dairy industries. ABARE has released agricultural productivity estimates since the early 1990s (See details in the reference provided below) but has not yet provide nontechnical users with a comprehensive description of the underlying theories and methodology, which is essential for the understanding and interpreting the productivity estimates. The second part of the project is about interpretation of agricultural productivity trends and it focuses on the factors underlying changes in productivity estimates. This will involve a survey and summary of the empirical studies (done by ABARE and elsewhere) and draw on experience and findings in the fields of Australian and international agricultural productivity (see details in the reference provided below) and relevant analyses of productivity in other industries which may have implications for agricultural productivity growth in Australia (for example, Hulten 2000; Jorgenson and Grilliches 1967). This part of the work will require a further search of the literature. The findings will be presented in a way nontechnical users are able to appreciate, interpret and use productivity statistics with confidence for analysis, policy making and communication in general.


National Rural Issues

Research Organisation

Australian Bureau of Agricultural and Resource Economics and Sciences

Objective Summary

The main objective of this project is to make it easier for nontechnical users of productivity estimates to understand, interpret and communicate productivity and relevant statistics in an informed way, by 1. providing an outline the theories and methodology underlying the productivity estimates with minimum technicality; and 2. providing a guidance on the factors that are found to be influential on the changes (over time) or differences (between farms or industries at a particular point in time) in agricultural productivity.

Project Code


Project Stage


Project Start Date

Friday, July 17, 2009

Project Completion Date

Wednesday, June 30, 2010

Journal Articles From Project

Not Available

National Priority

An environmentally sustainable Australia

National Priority

Adoption of R&D

National Priority

NRI-National Rural Issues


Related publications


Precis - Agricultural Productivity: Concepts, Measurement and Factors Driving It