IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61021.html

Uncovering Productivity Growth in the Disaggregate: Indonesia's Dueling Agricultural Sub-Sectors

Author

Listed:
  • Rada, Nicholas E.
  • Buccola, Steven T.
  • Fuglie, Keith O.

Abstract

The success of seed-fertilizer technologies and government subsidies in attaining nearly self-sufficient rice production in the mid-1980s encouraged the Indonesian government soon afterward to shift resources away from food crops and toward export-oriented crops. These shifts were reinforced by trade liberalization and a sharp devaluation of the rupiah after the 1997 Asian financial crisis, which exerted Indonesia’s comparative advantage in tropical perennial products. In the present paper, we ask whether such events have altered Indonesia’s agricultural growth strategy from a food-crop to an export-crop one. With an innovative multi-output stochastic distance frontier model and provincial production and policy-related data from 1985 to 2005, we estimate technology growth by agricultural subsector and efficiency improvement by political jurisdiction. The perennial-crop sector is found to have achieved the highest technology growth rate, followed by the livestock and annual-crop sectors. We find overall productivity growth to have been moderate, and suggest that little of it can be attributed to Indonesia’s public research efforts.

Suggested Citation

  • Rada, Nicholas E. & Buccola, Steven T. & Fuglie, Keith O., 2010. "Uncovering Productivity Growth in the Disaggregate: Indonesia's Dueling Agricultural Sub-Sectors," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61021, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61021
    DOI: 10.22004/ag.econ.61021
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/61021/files/Rada-Buccola-Fuglie_AAEA_2010.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.61021?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. Caudill, Steven B & Ford, Jon M & Gropper, Daniel M, 1995. "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 105-111, January.
    2. Calderon, Cesar & Serven, Luis, 2004. "The effects of infrastructure development on growth and income distribution," Policy Research Working Paper Series 3400, The World Bank.
    3. repec:wbk:wbpubs:28241 is not listed on IDEAS
    4. repec:wbk:wbpubs:11855 is not listed on IDEAS
    5. Luis Serven & César Calderon, 2004. "The Effects of Infrastructure Development on Growth and income," Econometric Society 2004 Latin American Meetings 173, Econometric Society.
    Full references (including those not matched with items on IDEAS)

    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. Jean-Louis Combes & Alexandru Minea & Pegdéwendé Nestor Sawadogo, 2019. "Assessing the effects of combating illicit financial flows on domestic tax revenue mobilization in developing countries," CERDI Working papers halshs-02019073, HAL.
    2. Ibrahim Ari & Muammer Koc, 2018. "Sustainable Financing for Sustainable Development: Understanding the Interrelations between Public Investment and Sovereign Debt," Sustainability, MDPI, vol. 10(11), pages 1-25, October.
    3. repec:wbk:wbpubs:6469 is not listed on IDEAS
    4. Klaus Andresen & Ursula Müller & Hans-Jörg Schmerer, 2026. "Energy for Growth: Satellite Synthetic Control Evidence from Indonesia," CESifo Working Paper Series 12502, CESifo.
    5. Hyungsun Chloe Cho & Miguel D. Ramirez, 2016. "Foreign Direct Investment and Income Inequality in Southeast Asia: a Panel Unit Root and Panel Cointegration Analysis, 1990–2013," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(4), pages 411-424, December.
    6. Vivien Fisch-Romito, 2021. "Embodied carbon dioxide emissions to provide high access levels to basic infrastructure around the world," Post-Print hal-03353919, HAL.
    7. Simplice Asongu & Nicholas Odhiambo, 2017. "Mobile banking usage, quality of growth, inequality and poverty in developing countries," Working Papers of the African Governance and Development Institute. 17/046, African Governance and Development Institute..
    8. repec:wbk:wbpubs:2290 is not listed on IDEAS
    9. Matthew Abiodun Dada, 2015. "Theoretical Analysis of Microeconomic Effect of Public Investment," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 3(1), pages 1-7, March.
    10. Cecilia Garc√Ça-Pe√Ëalosa & Stephen J. Turnovsky, 2011. "Taxation and Income Distribution Dynamics in a Neoclassical Growth Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(8), pages 1543-1577, December.
    11. Ioannis N. Kessides, 2012. "Regionalising Infrastructure for Deepening Market Integration: The Case of East Africa," Journal of Infrastructure Development, India Development Foundation, vol. 4(2), pages 115-138, December.
    12. Pedro R. D. Bom & Aitor Goti, 2018. "Public Capital and the Labor Income Share," Sustainability, MDPI, vol. 10(11), pages 1-17, October.
    13. Simplice Asongu & Jacinta Nwachukwu, 2016. "Welfare Spending and Quality of Growth in Developing Countries: A Note on Evidence from Hopefuls, Contenders and Best Performers," Working Papers of the African Governance and Development Institute. 16/028, African Governance and Development Institute..
    14. repec:wbk:wboper:26485 is not listed on IDEAS
    15. Sohag, Kazi & Badur, Mesut M. & Ameer, Waqar & Vilamová, Šárka, 2024. "Does ICT diffusion validate skill-biased technological change hypothesis? Evidence from the post-Soviet countries," Technology in Society, Elsevier, vol. 76(C).
    16. Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(4), pages 745-770, November.
    17. Ali, Mohammad Afshar & Alam, Khorshed & Taylor, Brad & Rafiq, Shuddhasattwa, 2019. "Do income distribution and socio-economic inequality affect ICT affordability? Evidence from Australian household panel data," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 317-328.
    18. Ranjan Kumar Dash & Deepa Jitendra Gupta & Tarun Khandelwal, 2024. "Revisited the role of foreign aid in capital formation: experience of South Asian countries," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    19. J. Rodrigo Fuentes S. & Verónica Mies M., 2005. "Looking at Chile’s Economic Dvelopment From an International Perspective," Journal Econom a Chilena (The Chilean Economy), Central Bank of Chile, vol. 8(1), pages 7-33, April.
    20. Ms. Valerie Cerra & Mr. Alfredo Cuevas & Carlos Góes & Ms. Izabela Karpowicz & Mr. Troy D Matheson & Issouf Samaké & Svetlana Vtyurina, 2016. "Highways to Heaven: Infrastructure Determinants and Trends in Latin America and the Caribbean," IMF Working Papers 2016/185, International Monetary Fund.
    21. Silvia Bertarelli, 2006. "Public capital and growth," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
    22. Pinar, Mehmet & Volkan, Engin, 2018. "Institutions and information flows, and their effect on capital flows," Information Economics and Policy, Elsevier, vol. 43(C), pages 34-47.
    23. Pécastaing, Nicolas & Dávalos, Jorge & Inga, Andy, 2018. "The effect of Peru's CDM investments on households’ welfare: An econometric approach," Energy Policy, Elsevier, vol. 123(C), pages 198-207.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:aaea10:61021. 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/aaeaaea.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.