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Research Investment and the Economic Returns To Chinese Agricultural Research

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  • Shenggen Fan

Abstract

This article measureseconomic returns to research investment in Chinese agricultureusing the production function approach. A stock-of-knowledgevariable constructed from the past research investment is directlyincluded in the production function as an explanatory variablein the production function. Improved rural infrastructure, irrigation,and education are also included as explanatory variables to avoidthe upward bias in the estimates of returns to agricultural research.A two-way variable coefficients technique is used in the estimationto reduce estimation biases due to the remaining measurementand omitted variables problems. Sensitivity analyses are conductedto test the effects of various lag structures on the return estimates.The results show that rates of return to research investmentin Chinese agriculture are high, ranging from 36% to 90% in1997, and the rates are increasing over time. Copyright Kluwer Academic Publishers 2000

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Bibliographic Info

Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 14 (2000)
Issue (Month): 2 (September)
Pages: 163-182

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Handle: RePEc:kap:jproda:v:14:y:2000:i:2:p:163-182

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Web page: http://www.springerlink.com/link.asp?id=100296

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Keywords: Agricultural research; Rates of returns; Chinese agriculture; Production function;

References

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  1. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  2. Fan, Shenggan & Pardey, Philip G., 1997. "Research, productivity, and output growth in Chinese agriculture," Journal of Development Economics, Elsevier, vol. 53(1), pages 115-137, June.
  3. Lin, Justin Yifu, 1991. "Public Research Resource Allocation in Chinese Agriculture: A Test of Induced Technological Innovation Hypotheses," Economic Development and Cultural Change, University of Chicago Press, vol. 40(1), pages 55-73, October.
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Citations

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Cited by:
  1. Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2001. "How agricultural research affects urban poverty in developing countries: the case of China," EPTD discussion papers 83, International Food Policy Research Institute (IFPRI).
  2. Balisacan, Arsenio M., 1. "Averting Hunger and Food Insecurity in Asia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1).
  3. World Bank, 2008. "Nigeria - Agriculture Public Expenditure Review," World Bank Other Operational Studies 7923, The World Bank.
  4. Hu, Ruifa & Cai, Yaqing & Chen, Kevin Z. & Cui, Yongwei & Huang, Jikun, 2010. "Effects of inclusive public agricultural extension service: Results from a policy reform experiment in Western China," IFPRI discussion papers 1037, International Food Policy Research Institute (IFPRI).
  5. Zhu, Jing, 2004. "Public investment and China's long-term food security under WTO," Food Policy, Elsevier, vol. 29(1), pages 99-111, February.
  6. Zhu, Jing & Zhu, J., 2003. "Public Investment And China'S Grain Production Competitiveness Under Wto," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25825, International Association of Agricultural Economists.
  7. Fan, Shenggen & Zhang, Xiaobo, 2004. "Infrastructure and regional economic development in rural China," China Economic Review, Elsevier, vol. 15(2), pages 203-214.
  8. Nasir nadeem, Dr. & khalid Mushtaq, Dr., 2010. "Role of Agricultural Research and Extension in Enhancing Agricultural Productivity in Punjab, Pakistan," MPRA Paper 27769, University Library of Munich, Germany.

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