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Productivity growth in Indonesian agriculture, 1961-2000

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  • Keith Fuglie

Abstract

This paper uses an index number approach to measure total factor productivity (TFP) growth in Indonesian crop and livestock agriculture from 1961 to 2000. Tornqvist-Theil chain-weighted indices of output, input and TFP are developed to minimise biases that may result from relative changes in input and output price aggregation weights. The results indicate that agricultural TFP growth accelerated in the 1970s and 1980s but stagnated in the 1990s. Without new efforts to increase productivity in agriculture, Indonesia's goal of using agricultural growth to generate broad-based rural development and further reduce poverty may be undermined.

Suggested Citation

  • Keith Fuglie, 2004. "Productivity growth in Indonesian agriculture, 1961-2000," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(2), pages 209-225.
    • Handle: RePEc:taf:bindes:v:40:y:2004:i:2:p:209-225
    DOI: 10.1080/0007491042000205286
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    1. Fuglie, Keith, 2013. "U.S. Agricultural Productivity," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152336, International Agricultural Trade Research Consortium.
    2. Butzer, Rita & Larson, Donald F. & Mundlak, Yair, 2002. "Determinants Of Agricultural Growth In Thailand, Indonesia And The Philippines," Discussion Papers 14979, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
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    Cited by:

    1. Robert Evenson & Keith Fuglie, 2010. "Technology capital: the price of admission to the growth club," Journal of Productivity Analysis, Springer, vol. 33(3), pages 173-190, June.
    2. Fuglie, Keith O. & Rada, Nicholas E., 2013. "Resources, Policies, and Agricultural Productivity in Sub-Saharan Africa," Economic Research Report 145368, United States Department of Agriculture, Economic Research Service.
    3. Tae Hoon Oum & Katsuhiro Yamaguchi & Yuichiro Yoshida, 2011. "Efficiency Measurement Theory and its Application to Airport Benchmarking," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 13, Edward Elgar Publishing.
    4. M. Ariff & Viverita, 2008. "On productivity performance gains of Indonesian firms," CARF F-Series CARF-F-136, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    5. Keith O. Fuglie, 2008. "Is a slowdown in agricultural productivity growth contributing to the rise in commodity prices?," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 431-441, November.
    6. Peter Warr, 2006. "Productivity Growth in Thailand and Indonesia: How Agriculture Contributes to Economic Growth," Working Papers in Economics and Development Studies (WoPEDS) 200606, Department of Economics, Padjadjaran University, revised Feb 2006.
    7. Osorio, Camilo Gomez & Abriningrum, Dwi Endah & Armas, Enrique Blanco & Firdaus, Muhammad, 2011. "Who is benefiting from fertilizer subsidies in Indonesia ?," Policy Research Working Paper Series 5758, The World Bank.
    8. Armas, Enrique Blanco & Osorio, Camilo Gomez & Moreno-Dodson, Blanca & Abriningrum, Dwi Endah, 2012. "Agriculture public spending and growth in Indonesia," Policy Research Working Paper Series 5977, The World Bank.
    9. Lee, Hiro & Roland-Holst, David, 2000. "Trade and Transmission of Endogenous Growth Effects: Japanese Economic Reform as an Externality for East Asian Economies," Conference papers 330892, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Chih‐Hai Yang & Chao‐Jing Yang & Chung‐Yueh Chiu & Hsuan‐Yu Lin, 2018. "Resource Allocation, Structural Change, and the Dynamics of Manufacturing Productivity in Indonesia," The Developing Economies, Institute of Developing Economies, vol. 56(4), pages 297-327, December.
    11. Nuno Araújo & Leonardo Costa, 2012. "The Productivity Of Innovation In Portugal," Working Papers de Economia (Economics Working Papers) 05, Católica Porto Business School, Universidade Católica Portuguesa.
    12. Permani Risti, 2011. "The Impacts of Trade Liberalisation and Technological Change on GDP Growth in Indonesia: A Meta Regression Analysis," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-30, December.
    13. Blanco Armas, Enrique & Gomez Osorio, Camilo & Moreno-Dodson, Blanca, 2010. "Agriculture Public Spending and Growth:The Example of Indonesia," World Bank - Economic Premise, The World Bank, issue 9, pages 1-4, April.

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