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Research and productivity in Indonesian agriculture

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  • Peter Warr

Abstract

Total factor productivity growth contributed 38 per cent of Indonesia’s agricultural output growth from the mid-1970s to the mid-2000s. This study uses time series data analysed with the error correction mechanism to examine the contribution of Indonesian publicly funded agricultural research to this outcome, allowing for other possible determinants of productivity growth, including international agricultural research, extension, government price policy and weather. The results imply a 27% real annual rate of return from a marginal increase in Indonesian agricultural research expenditure. Indonesia’s public agricultural research explains virtually all of its agricultural total factor productivity growth between 1975 and 2006.

Suggested Citation

  • Peter Warr, 2022. "Research and productivity in Indonesian agriculture," Departmental Working Papers 2022-02, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2022-02
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    File URL: https://acde.crawford.anu.edu.au/sites/default/files/publication/acde_crawford_anu_edu_au/2022-02/acde_td_warr_2022_02.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Agricultural research; Indonesia; error correction mechanism.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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