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Government Policy and Agricultural Productivity in Indonesia
Author(s) -
Rada Nicholas E.,
Buccola Steven T.,
Fuglie Keith O.
Publication year - 2011
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aar004
Subject(s) - productivity , government (linguistics) , frontier , agriculture , economics , investment (military) , green revolution , agricultural productivity , panel data , public policy , indonesian , public economics , agricultural economics , economic policy , business , economic growth , political science , linguistics , philosophy , ecology , politics , law , econometrics , biology
We focus on the agricultural productivity implications of the complex of investment, price, and research policies the Indonesian government has employed since the end of the Green Revolution. In particular, we employ a new 1985–2005 provincial panel dataset together with a stochastic output distance frontier framework to examine how government policies have affected the nation's agricultural productivity, decomposing it into its technical progress and efficiency components. Government's primary contributions to technology growth have come through price and trade policies rather than public research. Most technology growth, however, appears to be due to informal technology diffusion.