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R&D investment in national and international agricultural research

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  • Pratt, Alejandro Nin
  • Fan, Shenggen

Abstract

This paper estimates required investment and its allocation among different regions to maximize agricultural output gains and poverty reduction. The analysis uses a social welfare function to simulate the optimal allocation of research and development (R&D) investment across developing regions (1) to maximize agricultural growth or (2) to maximize poverty reduction at the global level. Due to uncertainties of the parameters used, we conducted sensitivity analyses to evaluate the effect of different values of R&D and poverty elasticities on the optimal allocation of R&D investment across regions. Our simulation results are robust for a wide range of parameters and show that to maximize agricultural output growth in developing countries, R&D investment should be allocated mainly to Southeast Asia and South Asia, whereas to maximize poverty reduction, priority should be given to Sub-Saharan Africa and South Asia.

Suggested Citation

  • Pratt, Alejandro Nin & Fan, Shenggen, 2010. "R&D investment in national and international agricultural research," IFPRI discussion papers 986, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:986
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    References listed on IDEAS

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    1. Shenggen Fan & Xiaobo Zhang, 2008. "Public Expenditure, Growth and Poverty Reduction in Rural Uganda," African Development Review, African Development Bank, vol. 20(3), pages 466-496.
    2. Fan, Shenggan & Pardey, Philip G., 1997. "Research, productivity, and output growth in Chinese agriculture," Journal of Development Economics, Elsevier, vol. 53(1), pages 115-137, June.
    3. Alston, Julian M. & Wyatt, T. J. & Pardey, Philip G. & Marra, Michele C. & Chan-Kang, Connie, 2000. "A meta-analysis of rates of return to agricultural R & D: ex pede Herculem?," Research reports 113, International Food Policy Research Institute (IFPRI).
    4. Harrison, Glenn W & Vinod, H D, 1992. "The Sensitivity Analysis of Applied General Equilibrium Models: Completely Randomized Factorial Sampling Designs," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 357-362, May.
    5. Evenson, Robert E. & Gollin, Douglas, 2007. "Contributions of National Agricultural Research Systems to Crop Productivity," Handbook of Agricultural Economics, Elsevier.
    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).
    7. Shenggen Fan & Xiaobo Zhang & Sherman Robinson, 2003. "Structural Change and Economic Growth in China," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 360-377, August.
    8. Barbara J. Craig & Philip G. Pardey & Johannes Roseboom, 1997. "International Productivity Patterns: Accounting for Input Quality, Infrastructure, and Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1064-1076.
    9. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).
    10. McCarl, Bruce A., 1992. "Mathematical Programming For Resource Policy Appraisal Under Multiple Objectives," Working Papers 11888, Environmental and Natural Resources Policy Training Project.
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    Cited by:

    1. Kleinwechter, Ulrich, 2012. "Global impacts of targeted interventions in food security crops – the case of potatoes in developing countries," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125735, International Association of Agricultural Economists.
    2. Nin-Pratt, Alejandro & Johnson, Michael E. & Yu, Bingxin, 2012. "Improved performance of agriculture in Africa South of the Sahara: Taking off or bouncing back?," IFPRI discussion papers 1224, International Food Policy Research Institute (IFPRI).

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    Keywords

    Agriculture; Growth; optimization; Poverty; R&D investment;

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