Government Policy and Agricultural Productivity in Indonesia

摘要

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.