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Research and extension expenditures and productivity in Japanese agriculture, 1960–1990

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  • Yoshimi Kuroda

Abstract

This paper investigates the cause for the decline in the growth of productivity in Japanese agriculture since the late 1960s. For this objective, it investigates the effects of research and extension (R&E) activities on the extent and the direction of the bias of technological change in Japanese agriculture for the period 1960–90 based on the translog cost function framework. Empirical results show that the cost‐reducing effects of R&E measured in terms of the absolute value of the cost–R&E elasticity increased slightly from 0.194 in 1960 to 0.205 in 1965 and then decreased consistently to 0.110 in 1990. This finding is broadly consistent with the finding of the decline or slowdown in agricultural productivity since the late 1960s. The bias due to R&E was found to be toward labor, intermediate inputs, and other inputs saving on the one hand, and machinery and land using on the other. Labor‐saving and machinery‐using biases are consistent with the Hicksian induced innovation hypothesis.

Suggested Citation

  • Yoshimi Kuroda, 1997. "Research and extension expenditures and productivity in Japanese agriculture, 1960–1990," Agricultural Economics, International Association of Agricultural Economists, vol. 16(2), pages 111-124, May.
    • Handle: RePEc:bla:agecon:v:16:y:1997:i:2:p:111-124
    DOI: 10.1111/j.1574-0862.1997.tb00447.x
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    Cited by:

    1. Teruel, Romeo G. & Kuroda, Yoshimi, 2005. "Public infrastructure and productivity growth in Philippine agriculture, 1974-2000," Journal of Asian Economics, Elsevier, vol. 16(3), pages 555-576, June.
    2. Esposti, Roberto & Pierani, Pierpaolo, 2002. "Public R&D Investment and Cost Behaviour in Italian Agriculture: 1960-1995," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24974, European Association of Agricultural Economists.
    3. Roberto Esposti, 2003. "Public R&D investment and cost structure in Italian agriculture, 1960--1995," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(4), pages 509-537, December.
    4. Rahmatullah, A. B. Md. & Kuroda, Yoshimi, 2005. "Causality between Capital Investment and Productivity in Japanese Agriculture, 1957-97," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 7, pages 1-10.
    5. Kuroda, Yoshimi & Abdullah, Naziruddin, 2003. "Impacts of Set-Aside and R&E Policies on Agricultural Productivity in Japan, 1965-97," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 5, pages 1-23.
    6. Esposti, Roberto & Pierani, Pierpaolo, 2000. "Modelling technical change in Italian agriculture: a latent variable approach," Agricultural Economics, Blackwell, vol. 22(3), pages 261-270, April.
    7. Kecuk Suhariyanto & Colin Thirtle, 2001. "Asian Agricultural Productivity and Convergence," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 96-110, September.
    8. Suhariyanto, Kecuk, 2000. "Agricultural Productivity Growth in Asian Countries," 2000 Conference, August 13-18, 2000, Berlin, Germany 197214, International Association of Agricultural Economists.
    9. Roberto Esposti, 2000. "Stochastic Technical Change and Procyclical TFP The Case of Italian Agriculture," Journal of Productivity Analysis, Springer, vol. 14(2), pages 119-141, September.
    10. Romeo G. Teruel & Yoshimi Kuroda, 2004. "An Empirical Analysis of Productivity in Philippine Agriculture, 1974–2000," Asian Economic Journal, East Asian Economic Association, vol. 18(3), pages 319-344, September.

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