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Research and agricultural productivity in Indonesia

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  • Warr, Peter G.

Abstract

Growth of total factor productivity has contributed 41 per cent of output growth in Indonesian agriculture since 1975. This study examines the extent to which publicly funded agricultural research within Indonesia has contributed to this productivity growth, while allowing for other possible determinants, including spillovers from international agricultural research, extension, weather changes, and government trade and subsidy policy. The econometric results imply a real annual rate of return to a marginal increase in Indonesian agricultural research expenditure of 27 per cent. Government-financed agricultural research explains 56 per cent of the observed increase in total factor productivity since 1975.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia with number 124475.

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Date of creation: 2012
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Handle: RePEc:ags:aare12:124475

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Keywords: Production Economics; Research and Development/Tech Change/Emerging Technologies;

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  1. Keith Fuglie, 2010. "Sources of growth in Indonesian agriculture," Journal of Productivity Analysis, Springer, vol. 33(3), pages 225-240, June.
  2. Zvi Griliches, 1996. "The Discovery of the Residual: A Historical Note," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1324-1330, September.
  3. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring.
  4. Fuglie, Keith O. & Heisey, Paul W., 2007. "Economic Returns to Public Agricultural Research," Economic Brief 6388, United States Department of Agriculture, Economic Research Service.
  5. Inder, Brett, 1993. "Estimating long-run relationships in economics : A comparison of different approaches," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 53-68.
  6. Peter Warr & Arief Anshory Yusuf, 2009. "International food prices and poverty in Indonesia," Departmental Working Papers 2009-19, The Australian National University, Arndt-Corden Department of Economics.
  7. Alston, Julian M. & Marra, Michele C. & Pardey, Philip G. & Wyatt, T. J., 1998. "Research returns redux: a meta-analysis of the returns to agricultural R&D," EPTD discussion papers 38, International Food Policy Research Institute (IFPRI).
  8. Makki, Shiva S. & Thraen, Cameron S. & Tweeten, Luther G., 1999. "Returns to American Agricultural Research: Results from a Cointegration Model," Journal of Policy Modeling, Elsevier, vol. 21(2), pages 185-211, March.
  9. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628 Elsevier.
  10. Vernon W. Ruttan, 2002. "Productivity Growth in World Agriculture: Sources and Constraints," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 161-184, Fall.
  11. Alston, Julian M. & Craig, Barbara J. & Pardey, Philip G., 1998. "Dynamics in the creation and depreciation of knowledge, and the returns to research:," EPTD discussion papers 35, International Food Policy Research Institute (IFPRI).
  12. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2008. "Climate Change and Economic Growth: Evidence from the Last Half Century," NBER Working Papers 14132, National Bureau of Economic Research, Inc.
  13. Waleerat Suphannachart & Peter Warr, 2009. "Research and Productivity in Thai Agriculture," Departmental Working Papers 2009-11, The Australian National University, Arndt-Corden Department of Economics.
  14. Jorgenson, Dale W, 1988. "Productivity and Postwar U.S. Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 2(4), pages 23-41, Fall.
  15. Hendry, David F., 1995. "Dynamic Econometrics," OUP Catalogue, Oxford University Press, number 9780198283164, September.
  16. Nicholas E. Rada & Steven T. Buccola & Keith O. Fuglie, 2010. "Government Policy and Agricultural Productivity in Indonesia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 863-880.
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