Analyzing the Technical Efficiency of Infrastructure and its Effects on Agricultural Productivity in OECD Economies

Abstract

The agricultural sector holds significant importance even for developed nations, such as those within the OECD, due to its role in meeting food supply requirements. Thus, infrastructure serves as a significant determinant of economic growth in general and agricultural productivity in particular. This study encompasses the impact of infrastructure on agriculture productivity by using DEA Data Envelop Analysis and Truncated regression, 28 OECD countries over the time period of 2017-2025. The DEA results show a strong impact of infrastructure on agricultural productivity in OECD countries. The truncated regression analysis embodies strong relationship of the variables selected to represent infrastructure on the target variable of agriculture growth. Road density, rail density, electricity consumption, and mobile subscription are variables that have demonstrated a significant impact on the agricultural sector. The developed countries like OECD countries shows that there is strong need of well maintained infrastructure for the agricultural efficiency to assure.thus the findings of this study suggest the need of the infrastructure maintenance for even developed countries to achieve the most wanted goals of international market integration, high productivity and poverty eradication by agriculture growth.