The productivity of commercial agriculture in Zimbabwe, 1970-89

This paper constructs an index of total factor productivity (TFP) for the period 1970–89, from the farm production accounts for the commercial sector. TFP grew at an average rate of 3 per cent per annum over the period, which is impressive. The index suggests that, despite the change in government policy that has redirected resources towards the Communal Lands, the sales of commercial farms and the political uncertainty faced by commercial farmers, the TFP growth rate has probably increased since independence. However, disaggregation provides evidence that the commercial farmers have been reluctant to invest, and that the minimum wage legislation and other factors have reduced employment in the sector.