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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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    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).
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    6. 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).
    7. George W. Norton & Jeffrey S. Davis, 1981. "Evaluating Returns to Agricultural Research: A Review," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 685-699.
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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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