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Privatization, Public R&D Policy, and Private R&D Investment in China's Agriculture

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Listed:
  • Hu, Ruifa
  • Liang, Qin
  • Pray, Carl E.
  • Huang, Jikun
  • Jin, Yanhong H.

Abstract

Private R&D is a major source of innovation and productivity growth in agriculture worldwide. This paper examines trends and determinants of agricultural R&D in China. Results show that while the public sector monopolized agricultural research until recently, private agricultural R&D has grown rapidly since 2000, driven largely by agribusiness privatization. Public-sector R&D investments in basic research also encouraged private R&D research, but public investments in technology development crowded out private R&D investment. China’s private R&D investment would grow more rapidly if the government shifted public resources from technology development to basic research.

Suggested Citation

  • Hu, Ruifa & Liang, Qin & Pray, Carl E. & Huang, Jikun & Jin, Yanhong H., 2011. "Privatization, Public R&D Policy, and Private R&D Investment in China's Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-17, August.
    • Handle: RePEc:ags:jlaare:117213
    DOI: 10.22004/ag.econ.117213
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    References listed on IDEAS

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    1. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
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    4. Evenson, Robert E. & Pray, Carl E. & Rosegrant, Mark W., 1999. "Agricultural research and productivity growth in India:," Research reports 109, International Food Policy Research Institute (IFPRI).
    5. Fuglie, Keith O. & Walker, Thomas S., 2001. "Economic Incentives And Resource Allocation In U.S. Public And Private Plant Breeding," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(3), pages 1-15, December.
    6. Pardey, Philip G. & Beintema, Nienke M. & Dehmer, Steven & Wood, Stanley, 2006. "Agricultural research: a growing global divide?," Food policy reports 17, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Chai, Yuan & Pardey, Philip G. & Chan-Kang, Connie & Huang, Jikun & Lee, Kyuseon & Dong, Wanlu, 2019. "Passing the food and agricultural R&D buck? The United States and China," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    2. Haiyan Deng & Ruifa Hu & Carl Pray & Yanhong Jin & Zhonghua Li, 2020. "Determinants of Firm‐Level Lobbying and Government Responsiveness in Agricultural Biotechnology in China," Review of Policy Research, Policy Studies Organization, vol. 37(2), pages 201-220, March.
    3. Deng, Haiyan & Jin, Yanhong & Pray, Carl & Hu, Ruifa & Xia, Enjun & Meng, Hong, 2021. "Impact of public research and development and extension on agricultural productivity in China from 1990 to 2013," China Economic Review, Elsevier, vol. 70(C).

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