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The Economic Value of Education in Agricultural Production: A Switching Regression Analysis of Selected East Asian Countries

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  • Huang, Fung-Mey
  • Luh, Yir-Hueih

Abstract

The emphasis of education as a driving force for the growth of agricultural productivity can be dated back to the early 1960s. However, most empirical work failed to take into account of the fact that production technology changes with time and consequently obscure the true contribution of education in agricultural production. This study presents a more efficient version to testing the hypothesis that education plays a key role in agricultural development using a switching regression model. Because farmers’ ability to deal with disequilibria is allowed to change with education in the present setting, a concrete evidence of the key role of education is provided in the empirical analysis of eight East Asian countries. The results suggest that there exists a threshold for the effects of education on agricultural productivity change. For the group of countries where education constitutes a major determinant of productivity growth in both the technical progress and stagnation regimes, we found the effect of education varies from country to country and from regime to regime. Moreover, our results also suggest technological improvement can defer the starting point of the descending stage whereas advance the time for taking off.

Suggested Citation

  • Huang, Fung-Mey & Luh, Yir-Hueih, 2009. "The Economic Value of Education in Agricultural Production: A Switching Regression Analysis of Selected East Asian Countries," 2009 Conference, August 16-22, 2009, Beijing, China 50928, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:50928
    DOI: 10.22004/ag.econ.50928
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    References listed on IDEAS

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    1. Simon Appleton & Arsene Balihuta, 1996. "Education and agricultural productivity: Evidence from Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(3), pages 415-444.
    2. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    3. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, June.
    4. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    5. Simon Appleton & Arsene Balihuta, 1996. "Education and agricultural productivity: Evidence from Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(3), pages 415-444.
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    Cited by:

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    2. Kafando, Wendata A., 2023. "Impacts of Education and the Adoption of Improved Sesame Seeds on Productivity of Sesame Farms in Burkina Faso," African Journal of Economic Review, African Journal of Economic Review, vol. 11(2), March.
    3. Zhaohong Wu & Wenyuan Hua & Liangguo Luo & Katsuya Tanaka, 2022. "Technical Efficiency of Maize Production and Its Influencing Factors in the World’s Largest Groundwater Drop Funnel Area, China," Agriculture, MDPI, vol. 12(5), pages 1-14, April.
    4. Kirtti Ranjan Paltasingh & Phanindra Goyari, 2018. "Impact of farmer education on farm productivity under varying technologies: case of paddy growers in India," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-19, December.

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