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Agriculture Public Spending and Growth:The Example of Indonesia

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  • Blanco Armas, Enrique

    ()
    (World Bank)

  • Gomez Osorio, Camilo

    ()
    (World Bank)

  • Moreno-Dodson, Blanca

    ()
    (World Bank)

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    Abstract

    This note analyzes the trends and evolution of public spending in the agriculture sector in Indonesia, as well as its impact on the growth of agriculture during the period 1976–2006. Public spending on agriculture and irrigation had a positive impact on agriculture growth during that period, whereas public spending on fertilizer subsidies had the opposite effect. As Indonesia continues its efforts to revitalize the agriculture sector, public spending should be directed at improving the provision of public services rather than at subsidizing private inputs.

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    File URL: http://siteresources.worldbank.org/INTPREMNET/Resources/EP9.pdf
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    Bibliographic Info

    Article provided by The World Bank in its journal Economic Premise.

    Volume (Year): (2010)
    Issue (Month): 9 (April)
    Pages: 1-4

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    Handle: RePEc:wbk:prmecp:ep9

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    Related research

    Keywords: Agriculture; Public Spending; Growth; Indonesia; irrigation; public services; private inputs; subsidies; farming; developing countries;

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    1. Lopez, Ramon & Galinato, Gregmar I., 2007. "Should governments stop subsidies to private goods? Evidence from rural Latin America," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1071-1094, June.
    2. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank.
    3. Fuglie, Keith O., 2003. "Productivity Growth in Indonesian Agriculture, 1961-2000," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57868, Australian Agricultural and Resource Economics Society.
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    Cited by:
    1. Allen, Summer L. & Qaim, Matin, 2012. "Agricultural productivity and public expenditures in sub-saharan africa:," IFPRI discussion papers 1173, International Food Policy Research Institute (IFPRI).

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