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Agricultural dynamics in Thailand, Indonesia and the Philippines

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  • Mundlak, Yair
  • Larson, Donald F.
  • Butzer, Rita

Abstract

The introduction of new high‐yielding varieties of cereals in the 1960s, known as the green revolution, dramatically changed the food supply in Asia, as well as in other countries. In the present paper we examine, over an extended period, the growth consequences for agriculture in Indonesia, Thailand and the Philippines. Despite geographical proximity, similar climate and other shared characteristics, gains in productivity and income differed significantly among the countries. We quantify these differences and examine their determinants. We find that the new technology changed the returns to fertilisers, irrigated land and capital, all of which proved scarce to varying degrees. Complementing technology‐related changes in factor use were investments, public and private, driven in part by policy. We find that factor accumulation played an important role in output growth and that accumulations from policy driven investments in human capital and public infrastructure were important sources of productivity gains. We conclude that policies that ease constraints on factor markets and promote public investment in people and infrastructure provide the best opportunities for agricultural growth.

Suggested Citation

  • Mundlak, Yair & Larson, Donald F. & Butzer, Rita, 2004. "Agricultural dynamics in Thailand, Indonesia and the Philippines," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), March.
  • Handle: RePEc:ags:aareaj:117863
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    References listed on IDEAS

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    1. Larson, David F. & Butzer, Rita & Mundlak, Yair & Crego, Al, 2000. "A Cross-Country Database for Sector Investment and Capital," World Bank Economic Review, World Bank Group, pages 371-391.
    2. Mundlak, Yair, 1981. "On the concept of non-significant functions and its implications for regression analysis," Journal of Econometrics, Elsevier, vol. 16(1), pages 139-149, May.
    3. Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2003. "Intersectoral Migration in Southeast Asia: Evidence from Indonesia, Thailand, and the Philippines," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35.
    4. Butzer, Rita & Larson, Donald F. & Mundlak, Yair, 2002. "Determinants Of Agricultural Growth In Thailand, Indonesia And The Philippines," Discussion Papers 14979, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    5. Larson, Donald F. & Plessmann, Frank, 2009. "Do farmers choose to be inefficient? Evidence from Bicol," Journal of Development Economics, Elsevier, vol. 90(1), pages 24-32, September.
    6. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
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    Cited by:

    1. Narayanamoorthy, A. & Hanjra, Munir A., 2006. "Rural Infrastructure and Agricultural Output Linkages: A Study of 256 Indian Districts," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(3).
    2. World Bank, 2009. "Land Reform, Rural Development, and Poverty in the Philippines : Revisiting the Agenda," World Bank Other Operational Studies 18545, The World Bank.
    3. Richard Tiffin & Xavier Irz, 2006. "Is agriculture the engine of growth?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 79-89, July.
    4. Keith Fuglie, 2010. "Sources of growth in Indonesian agriculture," Journal of Productivity Analysis, Springer, vol. 33(3), pages 225-240, June.
    5. Mundlak, Yair & Butzer, Rita & Larson, Donald F., 2012. "Heterogeneous technology and panel data: The case of the agricultural production function," Journal of Development Economics, Elsevier, vol. 99(1), pages 139-149.
    6. February 2010, 2010. "Scenarios and Options for Productivity Growth in Philippine Agriculture An Application of the AMPLE," Microeconomics Working Papers 22806, East Asian Bureau of Economic Research.
    7. Samuel Bazzi, 2017. "Wealth Heterogeneity and the Income Elasticity of Migration," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 219-255, April.

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    Keywords

    International Development;

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