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Capital Formation and Growth in the Israeli Cooperative Farm
Author(s) -
Sadan Ezra
Publication year - 1968
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237633
Subject(s) - economics , capital (architecture) , gross domestic product , agricultural economics , solow residual , capital formation , product (mathematics) , annual growth % , growth rate , labour economics , monetary economics , growth accounting , macroeconomics , market economy , human capital , financial capital , geography , productivity , mathematics , total factor productivity , geometry , archaeology
The Israeli cooperative farm is characterized by a high rate of expansion; the annual rate of growth of the cooperatives' gross product is 11.5 percent. The analysis of the growth pattern of this farm enterprise from 1936 to 1960 suggests that 2 percent of the annual rate of growth of the gross product can be attributed to capital, 1.5 percent to land and labor, 5 percent to the extended utilization of raw materials, and a residual of 3 percent to “technical progress.” A closer examination reveals that a considerable portion of the last is associated with capital formation, probably as a result of technological improvements carried through the flow of gross investments. A smaller portion of the unexplained growth can be attributed to improvements in the “managerial capacity” of the firms under study.