Public investment in R&D and extension and productivity in Australian broadacre agriculture
AbstractThis paper uses time-series data to examine the relationship between public research and development (R&D) and extension investment and productivity growth in Australian broadacre agriculture. The results show that public R&D investment has significantly promoted productivity growth in Australia’s broadacre sector over the past five decades (1953 to 2007). Moreover, the relative contributions of domestic and foreign R&D have been roughly equal, accounting for an estimated 0.6 per cent and 0.63 per cent of annual total factor productivity (TFP) growth in the broadacre sector, respectively. The elasticity of TFP to knowledge stocks of research (both domestic and foreign) and extension were estimated to be around 0.20–0.24 and 0.07–0.15, respectively. The ranges reflect the alternative distributions of benefits flowing from knowledge stocks that were assumed in the analysis. The elasticities translated into internal rates of return (IRRs) of around 15.4–38.2 per cent and 32.6–57.1 per cent a year for research and extension, respectively. While such rates are less than the average IRR of around 100 per cent reported in the international literature, they are consistent with previous estimates for Australian agriculture in the order of 15–40 per cent.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia with number 100712.
Date of creation: 2011
Date of revision:
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Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
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R&D; total factor productivity; agriculture; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-03-05 (Agricultural Economics)
- NEP-ALL-2011-03-05 (All new papers)
- NEP-EFF-2011-03-05 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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