Tehran Institute for Advanced Studies (TeIAS)

/ Global Trade and Margins of Productivity in Agriculture __ Farid Farrokhi


Global Trade and Margins of Productivity in Agriculture

December 25, 2019


Khatam University, Building No2.
Address: Mollasadra Blvd., North Shirazi St., East Daneshvar St., No.17. See location on Google map


Dr. Farid Farrokhi

Assistant Professor of Economics at Purdue University


We study the effects of globalization on agricultural productivity across the world geography. We develop a multi-country general equilibrium model that incorporates choices of crops and technologies in agricultural production. The model describes how changes to international trade costs and productivities affect these choices at a detailed grid cell (field) level. We estimate our model using extremely rich micro data on potential yields of crops based on different technologies in more than a million fields around the world. We identify key elasticities that govern choices of crops and technologies by exploiting field-level variations in land productivities and cross-country differences in input use. Allowing the interaction between trade and technology significantly improves the model’s fit to cross-country differences in agriculture labor productivity. Our quantitative exercises demonstrate the importance of reductions in trade costs of agricultural inputs on agricultural productivity through a shift toward modern, input-intensive technologies.   


Farid Farrokhi is an assistant professor of economics at Purdue University. His research focuses on two areas. One on international trade with applications to the productivity impact of trade in intermediate inputs. The other on economic geography with a focus on the effects of place-based policies on income inequality. As for his background, he has done his studies in Sharif (BS & MS) and Penn State (PhD). He often finds himself an advocate of theory among empirical economists and of empirical analysis among theorists.