Figure 2.5: Labor Productivity in the Agricultural Sector, 2021
to calculate agricultural LP by industry classification. Agricultural LP is measured as the value of GDP in agriculture, hunting, forestry, and fishing at constant prices, divided by employment in the The main explanatory variable of interest is the energy efficiency index in the agricultural sector. Since no direct data on energy efficiency in the agricultural sector are available, it is constructed as a proxy variable through a two-step procedure. First, agricultural energy use is estimated by energy use shares from the IEA. Second, energy efficiency in the agricultural sector is calculated as agricultural energy use divided by industry-specific GDP, as reported by the APO. Agriculture Energy Efficiencyit (EEi,t) = levels. For instance, Japan, the ROK, and the ROC, i.e., economies with the highest levels of economic development, exhibit the lowest energy efficiency. At the same time, Bangladesh, with one of the lowest levels of economic development, demonstrates the highest efficiency. These 46|APO PRODUCTIVITY OUTLOOK 2026|ENERGY EFFICIENCY, PRODUCTIVITY IMPACTS, AND COMPOSITE INDICATOR DEVELOPMENT