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Government Policy and Agricultural Productivity in Indonesia

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  • Nicholas E. Rada
  • Steven T. Buccola
  • Keith O. Fuglie

Abstract

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. Copyright 2010, Oxford University Press.

Suggested Citation

  • Nicholas E. Rada & Steven T. Buccola & Keith O. Fuglie, 2010. "Government Policy and Agricultural Productivity in Indonesia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 863-880.
    • Handle: RePEc:oup:ajagec:v:93:y:2010:i:3:p:863-880
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    File URL: http://hdl.handle.net/10.1093/ajae/aar004
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    Cited by:

    1. Zewdie Habte Shikur, 2020. "Agricultural policies, agricultural production and rural households’ welfare in Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-21, December.
    2. Christensen, Cheryl, 2018. "Progress and Challenges in Global Food Security," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 0(01), February.
    3. Warr, Peter G., 2012. "Research and agricultural productivity in Indonesia," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124475, Australian Agricultural and Resource Economics Society.
    4. Hendricks, Nathan P. & Smith, Aaron D. & Villoria, Nelson B., 2018. "Global Agricultural Supply Response to Persistent Price Shocks," 2018 Annual Meeting, August 5-7, Washington, D.C. 274338, Agricultural and Applied Economics Association.
    5. Sun Ling Wang & Eldon Ball & Richard Nehring & Ryan Williams & Truong Chau, 2018. "Impacts of Climate Change and Extreme Weather on US Agricultural Productivity: Evidence and Projection," NBER Chapters, in: Agricultural Productivity and Producer Behavior, pages 41-75, National Bureau of Economic Research, Inc.
    6. Rada, Nicholas E. & Valdes, Constanza, 2012. "Policy, Technology, and Efficiency of Brazilian Agriculture," Economic Research Report 127498, United States Department of Agriculture, Economic Research Service.

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