Productivity growth in Indonesian agriculture, 1961–2000
- 1 August 2004
- journal article
- other
- Published by Taylor & Francis in Bulletin of Indonesian Economic Studies
- Vol. 40 (2) , 209-225
- https://doi.org/10.1080/0007491042000205286
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.Keywords
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