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The Economic Value of Education in Agricultural Production: A Switching Regression Analysis of Selected East Asian Countries

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  • Huang, Fung-Mey
  • Luh, Yir-Hueih
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    Abstract

    The emphasis of education as a driving force for the growth of agricultural productivity can be dated back to the early 1960s. However, most empirical work failed to take into account of the fact that production technology changes with time and consequently obscure the true contribution of education in agricultural production. This study presents a more efficient version to testing the hypothesis that education plays a key role in agricultural development using a switching regression model. Because farmers’ ability to deal with disequilibria is allowed to change with education in the present setting, a concrete evidence of the key role of education is provided in the empirical analysis of eight East Asian countries. The results suggest that there exists a threshold for the effects of education on agricultural productivity change. For the group of countries where education constitutes a major determinant of productivity growth in both the technical progress and stagnation regimes, we found the effect of education varies from country to country and from regime to regime. Moreover, our results also suggest technological improvement can defer the starting point of the descending stage whereas advance the time for taking off.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 50928.

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    Date of creation: 2009
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    Handle: RePEc:ags:iaae09:50928

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    Related research

    Keywords: East Asian agricultural growth; Education; Switching regression; International Development; Labor and Human Capital; Productivity Analysis; O47; O57;

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    1. Simon Appleton & Arsene Balihuta, 1996. "Education and agricultural productivity: Evidence from Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(3), pages 415-444.
    2. Barry Bosworth & Susan M. Collins, 2008. "Accounting for Growth: Comparing China and India," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 45-66, Winter.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    4. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
    5. Arega Alene & V. Manyong, 2007. "The effects of education on agricultural productivity under traditional and improved technology in northern Nigeria: an endogenous switching regression analysis," Empirical Economics, Springer, vol. 32(1), pages 141-159, April.
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