The Performance of the Agricultural Economics in BRICS Countries - The Agricultural Economics of the 21st Century - page 86

Table 6.2 Results obtained with time series econometric techniques, considering the function of
production model extended with other variables (linear model obtained with logarithms), for the
agricultural output in the period 1961-2012

South Africa Brazil China India

Prais-
Winsten
(Robust)

Prais-
Winsten
(Robust)

Prais-
Winsten

Prais-
Winsten Model

Constant 12.559*

(6.850)
[0.000]

9.333*
(13.970)
[0.000]

Agriculture value added per worker
(constant 2005 US$)

1.108*
( 8.240)
[0.000]

0.720*
( 4.900)
[0.000]

Employment in agriculture (% of total
employment)

1.022* 1.228*

(2.350)
[0.026]

( 3.690)

[0.001]

Additional variable a 0.467*

(3.020)
[0.014]

0.520*
(6.380)
[0.000]

0.780* 0.504*

( 4.180)

[0.000]

( 4.630)

[0.000]

Breusch-Pagan/Cook-Weisberg test
for heteroskedasticity

4.190*
[0.040]

0.300
[0.586]

7.590*
[0.005]

0.000
[0.960]

Ramsey RESET test using powers of
the fitted values

0.240
[0.864]

8.800*
[0.000]

36.620*
[0.000]

2.760**
[0.061]

LM test for autoregressive conditional
heteroskedasticity (ARCH)

0.211
[0.645]

0.128
[0.720]

2.677
[0.101]

0.771
[0.380]

Note : *Statistically significant at 5 %; **Statistically significant at 10 %
a Lending interest rate (%) for South Africa, Exports of goods and services (% of GDP) for Brazil,
Services, etc., value added (% of GDP) for China, and Gross capital formation (% of GDP) for
India

followed by Russia with 0.829. On the other hand, agricultural productivity pre-
sents a negative in Brazil and India, of 0.376, respectively.

For the results in Table 6.2 the models were extended with the lending interest
rate (%) for South Africa, export of goods and services (% of GDP) for Brazil,
services, etc., value added (% of GDP) for China, and gross capital formation (% of
GDP) for India.
The problems of having a lack of variables in the models were solved for
South Africa and, to a certain degree for India, but not for Brazil and China with
the variables considered in this study. This may be an interesting issue for future
research. The lending interest rate (%) for South Africa and the export of goods and
services (% of GDP) for Brazil have a positive impact on the agricultural output, in
contrast with services, etc., value added (% of GDP) for China, and gross capital
formation (% of GDP) for India.

0.797 and