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Measurement Of Technological Change Biases And Factor Substitutions For Malaysian Rice Farming


  • Naziruddin Abdullah

    () (International Islamic University Malaysia)


Due to a full-fledged initiation of irrigation facilities into all of Malaysia’s major designated paddy areas in the late 1970s, the rice farming sector has undergone rapid transformation. In particular, double-cropping has become possible. However, never in the past have studies been undertaken to explicitly incorporate, and thus, investigate this recent phenomenon by means of a macro-type, and time series of cross-section data. Using a translog cost function approach, and by incorporating the seasonal and proximity factors into the analysis, the present paper empirically investigates the production structures underlying Malaysian rice farming for the period 1980-90. The results, though, seem to support Hicks’ induced-innovation hypothesis and to some extent, the criticism against the Green Revolution. Perhaps, the method employed here could also be applied to investigate other countries’ production structures whose rice farming sector shares similar characteristics to that of Malaysia.

Suggested Citation

  • Naziruddin Abdullah, 2002. "Measurement Of Technological Change Biases And Factor Substitutions For Malaysian Rice Farming," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 10(1), pages 1-20, June.
  • Handle: RePEc:ije:journl:v:10:y:2002:i:1:p:1-20

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    References listed on IDEAS

    1. Valerie R. Bencivenga & Bruce D. Smith, 1991. "Financial Intermediation and Endogenous Growth," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 195-209.
    2. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 717-737.
    3. Adam B. Elhiraika, 1996. "Risk-Sharing And The Supply Of Agricultural Credit: A Case Study Of Islamic Finance In Sudan," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 390-402.
    4. Demirguc-Kunt, Ash & Levine, Ross, 1996. "Stock Market Development and Financial Intermediaries: Stylized Facts," World Bank Economic Review, World Bank Group, vol. 10(2), pages 291-321, May.
    5. Abbas Mirakhor & Mohsin S. Khan, 1991. "Islamic Banking," IMF Working Papers 91/88, International Monetary Fund.
    6. Khan, Mohsin S & Mirakhor, Abbas, 1990. "Islamic Banking: Experiences in the Islamic Republic of Iran and in Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 353-375, January.
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    More about this item


    Production structures; Technological change; Factor substitutions;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other


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