Research and productivity in Indonesian agriculture

Peter Warr

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

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.

Keywords: Agricultural research; Indonesia; error correction mechanism. (search for similar items in EconPapers)
JEL-codes: C22 O13 O33 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2022
New Economics Papers: this item is included in nep-agr, nep-eff and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2022-02

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