Beta-convergence of crop yield across countries: A Modern Panel Data Analysis

Abstract This study examines the state of beta-convergence in three major crop yields l in the world namely rice, wheat and maize in terms of output production and cereal grain consumption during the period 1961 to 2016 using modern panel data approach concerning beta convergence. This has been done by applying the advanced panel data methodology, namely, panel unit root tests on demeaned series and panel regression apart from conventional indicators such as standard deviation and coefficient of variation. The conventional sigma convergence indicators namely, standard deviation and coefficient of variation show convergence for wheat for the period of 1986 to 2016 showing a downward trend and thus indicating sigma-convergence, But the results of panel unit root and panel regression establish beta convergence for all the crop yield. This result also shows that economies converge to different steady states.JEL classification: Q1, Q18, C23, O47