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Agriculture Public Spending and Growth:The Example of Indonesia


  • Blanco Armas, Enrique

    () (World Bank)

  • Gomez Osorio, Camilo

    () (World Bank)

  • Moreno-Dodson, Blanca

    () (World Bank)


This note analyzes the trends and evolution of public spending in the agriculture sector in Indonesia, as well as its impact on the growth of agriculture during the period 1976–2006. Public spending on agriculture and irrigation had a positive impact on agriculture growth during that period, whereas public spending on fertilizer subsidies had the opposite effect. As Indonesia continues its efforts to revitalize the agriculture sector, public spending should be directed at improving the provision of public services rather than at subsidizing private inputs.

Suggested Citation

  • Blanco Armas, Enrique & Gomez Osorio, Camilo & Moreno-Dodson, Blanca, 2010. "Agriculture Public Spending and Growth:The Example of Indonesia," World Bank - Economic Premise, The World Bank, issue 9, pages 1-4, April.
  • Handle: RePEc:wbk:prmecp:ep9

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    References listed on IDEAS

    1. Keith Fuglie, 2004. "Productivity growth in Indonesian agriculture, 1961-2000," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(2), pages 209-225.
    2. Lopez, Ramon & Galinato, Gregmar I., 2007. "Should governments stop subsidies to private goods? Evidence from rural Latin America," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1071-1094, June.
    3. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank.
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    Cited by:

    1. World Bank, 2010. "Republic of Rwanda : Technical Assistance for Public Expenditure Management," World Bank Other Operational Studies 18528, The World Bank.
    2. Allen, Summer L. & Qaim, Matin, 2012. "Agricultural productivity and public expenditures in sub-saharan africa:," IFPRI discussion papers 1173, International Food Policy Research Institute (IFPRI).

    More about this item


    Agriculture; Public Spending; Growth; Indonesia; irrigation; public services; private inputs; subsidies; farming; developing countries;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies


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