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Public investment in agricultural R&D and extension

Public investment in agricultural R&D and extension Purpose – The purpose of this paper is to analyze the effects of public investment in agricultural R&D and extension on broadacre farming productivity in Australia. Design/methodology/approach – An autoregressive integrated moving average (ARIMA) regression model is applied to estimate the effects of public investment in agricultural R&D and extension on Australian braodacre productivity. Findings – The study reveals that public investment in agricultural R&D and extension has contributed almost two-thirds of average annual broadacre productivity growth between 1952-1953 and 2006-2007, the average internal rate of return to public investment in agricultural R&D and extension was 28.4 and 47.5 per cent a year, respectively, and overseas spill-ins is an important source of domestic agricultural productivity growth. Practical implications – Policy implications: the findings suggest that increasing public investment in agricultural R&D and extension and maintaining agricultural R&D policy stability are equally important to have a sustained long-term agricultural productivity growth, and maintaining an open trade and investment regime is important to benefit from foreign knowledge spillovers which is especially important for developing countries. Originality/value – This paper contributes to the existing literature by employing more sophisticated econometric techniques with an extended data set for the period from 1952-1953 to 2006-2007. The study separates the contribution of public R&D investment and the extension investment, and also takes into account the contribution of overseas public investment on the TFP growth in the Australian broadacre sector. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

Public investment in agricultural R&D and extension

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1756-137X
DOI
10.1108/CAER-05-2014-0052
Publisher site
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Abstract

Purpose – The purpose of this paper is to analyze the effects of public investment in agricultural R&D and extension on broadacre farming productivity in Australia. Design/methodology/approach – An autoregressive integrated moving average (ARIMA) regression model is applied to estimate the effects of public investment in agricultural R&D and extension on Australian braodacre productivity. Findings – The study reveals that public investment in agricultural R&D and extension has contributed almost two-thirds of average annual broadacre productivity growth between 1952-1953 and 2006-2007, the average internal rate of return to public investment in agricultural R&D and extension was 28.4 and 47.5 per cent a year, respectively, and overseas spill-ins is an important source of domestic agricultural productivity growth. Practical implications – Policy implications: the findings suggest that increasing public investment in agricultural R&D and extension and maintaining agricultural R&D policy stability are equally important to have a sustained long-term agricultural productivity growth, and maintaining an open trade and investment regime is important to benefit from foreign knowledge spillovers which is especially important for developing countries. Originality/value – This paper contributes to the existing literature by employing more sophisticated econometric techniques with an extended data set for the period from 1952-1953 to 2006-2007. The study separates the contribution of public R&D investment and the extension investment, and also takes into account the contribution of overseas public investment on the TFP growth in the Australian broadacre sector.

Journal

China Agricultural Economic Review – Emerald Publishing

Published: Feb 2, 2015

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