IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/54718.html
   My bibliography  Save this article

Assessing the benefits of research expenditures on maize production in South Africa

Author

Listed:
  • Townsend, Rob F.
  • van Zyl, Johan
  • Thirtle, Colin G.

Abstract

This paper focuses on assessing the benefits of research expenditures on maize production in South Africa. Both the production and supply function approaches are used to calculate elasticities of research expenditure on output and yield. Cointegration is used to establish long-run relationships between variables in these models. The lag structure of R&D expenditures on output is examined making use of the unrestricted, polynomial, beta and gamma distributions. The coefficients of these lag distributions were then used to calculate a rate of return to maize research expenditure, which was estimated as being between 28% and 39% per annum. These rates of return are high, mitigating in favour of more research expenditure rather than less.

Suggested Citation

  • Townsend, Rob F. & van Zyl, Johan & Thirtle, Colin G., 1997. "Assessing the benefits of research expenditures on maize production in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-13, December.
    • Handle: RePEc:ags:agreko:54718
    DOI: 10.22004/ag.econ.54718
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/54718/files/18_townsend%20-%20december%201997.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.54718?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Johann Kirsten & Julian May & Sheryl Hendriks & Charles L. Machethe & Cecelia Punt & Mike Lyne, 2007. "South Africa," Chapters, in: Fabrizio Bresciani & Alberto Valdés (ed.), Beyond Food Production, chapter 8, Edward Elgar Publishing.
      • Liebenberg, Frikkie & Beintema, Nienke M. & Kirsten, Johann F., 2004. "South Africa," ASTI country briefs 14, International Food Policy Research Institute (IFPRI).
    2. Gallagher, Paul W., 1978. "The Effectiveness Of Price Support Policy--Some Evidence For U.S. Corn Acreage Response," Staff Papers 14140, University of Minnesota, Department of Applied Economics.
    3. Michio Hatanaka & T. Dudley Wallace, 1980. "Multicollinearity and the Estimation of Low-Order Moments in Stable Lag Distributions," NBER Chapters, in: Evaluation of Econometric Models, pages 323-337, National Bureau of Economic Research, Inc.
    4. Gallagher, Paul, 1978. "The Effectiveness Of Price Support Policy-Some Evidence For U.S. Corn Acreage Response," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 30(4), pages 1-7, October.
    5. Andrews, Donald W. K. & Fair, Ray C., 1992. "Estimation of polynomial distributed lags and leads with end point constraints," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 123-139.
    6. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    7. Zvi Griliches, 1958. "Research Costs and Social Returns: Hybrid Corn and Related Innovations," Journal of Political Economy, University of Chicago Press, vol. 66(5), pages 419-419.
    8. Robert Evenson, 1967. "The Contribution of Agricultural Research to Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(5), pages 1415-1425.
    9. Echeverría, Ruben G., 1990. "Methods for Diagnosing Research System Constraints and Assessing the Impact of Agricultural Research - Volume 1: Diagnosing Agricultural Research System Constraints," ISNAR Archive 310626, CGIAR > International Food Policy Research Institute (IFPRI).
    10. Doyle, C. J. & Ridout, M. S., 1985. "The impact of scientific research on UK agricultural productivity," Research Policy, Elsevier, vol. 14(2), pages 109-116, April.
    11. Jan Kmenta & James B. Ramsey, 1980. "Evaluation of Econometric Models," NBER Books, National Bureau of Economic Research, Inc, number kmen80-1, March.
    12. Chembezi, Duncan M, 1991. "Acreage Response to Price and Risk: The Case of Tobacco in Malawi," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(1), pages 85-102.
    13. Alston, Julian M. & Pardey, Philip G. & Taylor, Michael J., 2001. "Agricultural science policy: changing global agendas," Food policy statements 32, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thirtle, Colin G. & Townsend, Rob F. & Amadi, Juliana & Lusigi, Angela & van Zyl, Johan, 1998. "The Rate Of Return On Expenditures Of The South African Agricultural Research Council (Arc)," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(4), pages 1-11, December.
    2. Ortmann, Gerald F., 2005. "Promoting the competitiveness of South African agriculture in a dynamic economic and political environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-35, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Townsend, Rob F. & van Zyl, Johan, 1998. "Estimation of the rate of return to wine grape research and technology development expenditures in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(2), pages 1-22, June.
    2. Wang, Shanchao & Alston, Julian M. & Pardey, Philip G., 2023. "R&D Lags in Economic Models," Staff Papers 330085, University of Minnesota, Department of Applied Economics.
    3. Jean-Paul Chavas & Matthew T. Holt, 1990. "Acreage Decisions Under Risk: The Case of Corn and Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 529-538.
    4. Bailey, Kenneth W. & Womack, Abner W., 1985. "Wheat Acreage Response: A Regional Econometric Investigation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-10, December.
    5. Pardey, Philip G. & Alston, Julian M. & Ruttan, Vernon W., 2010. "The Economics of Innovation and Technical Change in Agriculture," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 939-984, Elsevier.
    6. John C. Quiggin, 1983. "Underwriting Agricultural Commodity Prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 200-211, December.
    7. Mazzucato, Valentina & Ly, Samba, 1994. "An Economic Analysis of Research and Technology Transfer of Millet, Sorghum, and Cowpeas in Niger," Food Security International Development Working Papers 54730, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Capps, Oral, Jr. & Williams, Gary W., 2006. "The Economic Effectiveness of the Cotton Checkoff Program," Reports 90753, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    9. Holt, Matthew T., 1989. "Risk, Rational Expectations, and Price Stabilization in the U.S. Corn Market," Staff Papers 200480, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    10. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy.
    11. Fraser, Rob W., 1988. "A Method For Evaluating Supply Response To Price Underwriting," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(1), pages 1-15, April.
    12. Pedro Andres Garzon Delvaux & Heinrich Hockmann & Peter Voigt & Pavel Ciaian & Sergio Gomez y Paloma, 2018. "The impact of private R&D on the performance of food-processing firms: Evidence from Europe, Japan and North America," JRC Research Reports JRC104144, Joint Research Centre.
    13. Jingdong Li & Weidong Liu & Zhouying Song, 2020. "Sustainability of the Adjustment Schemes in China’s Grain Price Support Policy—An Empirical Analysis Based on the Partial Equilibrium Model of Wheat," Sustainability, MDPI, vol. 12(16), pages 1-22, August.
    14. R.W. Fraser, 1991. "Price‐Support Effects On Ec Producers," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 1-10, January.
    15. Holt, Matthew T., 1991. "A Multi-Market Bounded Prices Model Under Rational Expectations: The Case of Corn and Soybeans in the U.S," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271199, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Holt, Matthew T., 1989. "A Multi-Market Rational Expectation Model with Bounded Prices: The Case of Corn and Soybeans in the U.S," Staff Papers 200485, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    17. C. Thirtle & P. Bottomley & P. Palladino & D. Schimmelpfennig & R. Townsend, 1998. "The rise and fall of public sector plant breeding in the United Kingdom: a causal chain model of basic and applied research and diffusion," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 127-143, September.
    18. Ruttan, Vernon W., 1998. "U.S. Science Policy: The Eroding Federal-University Contract," Conference Papers 14482, University of Minnesota, Center for International Food and Agricultural Policy.
    19. Easter, K. William & Norton, George W., 1976. "Estimates Of Potential Returns From Added Research Budget For The Land Grant Universities," Staff Papers 13464, University of Minnesota, Department of Applied Economics.
    20. Liu, Hsiang-Hsi, 1983. "An annual simultaneous equation econometric model of U.S. corn and soybean cash and futures markets," ISU General Staff Papers 198301010800009935, Iowa State University, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:54718. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.