#1468644 ANPEC - 2002 - Exame de Seleção Nacional (ANPEC)/"2003"

Exogenous Technical Progress

In the long run, at least in the more vibrant regions of developing country farming technology probably affects farm-level incentives more than prices do. For example, the productivity levels of land, labor, fertilizer, and irrigation in rice or wheat production in the Indian Punjab have probably changed faster over the 1964-1992 period than their respective input/output price ratios. Farmers’ selection from an available set of generated production technologies determines whether their response to the joint pressures of population and changing prices will be resource-enhancing or resource-degrading.

In the discussion of the impact of farming technology on resource use in developing countries rural areas the text

Item 0 - makes it clear that the incentives from technology surpass those of prices, across the board;