Agricultural Dynamics in Thailand, Indonesia and the Philippines

32 Pages Posted: 10 Apr 2004

See all articles by Yair Mundlak

Yair Mundlak

Hebrew University of Jerusalem - Department of Agricultural Economics and Management

Rita Butzer

University of Chicago - Department of Economics

Donald F. Larson

Institute for the Theory and Practice of International Relations

Abstract

The introduction of new high-yielding varieties of cereals in the 1960s, known as the green revolution, dramatically changed the food supply in Asia, as well as in other countries. In the present paper we examine, over an extended period, the growth consequences for agriculture in Indonesia, Thailand and the Philippines. Despite geographical proximity, similar climate and other shared characteristics, gains in productivity and income differed significantly among the countries. We quantify these differences and examine their determinants. We find that the new technology changed the returns to fertilisers, irrigated land and capital, all of which proved scarce to varying degrees. Complementing technology-related changes in factor use were investments, public and private, driven in part by policy. We find that factor accumulation played an important role in output growth and that accumulations from policy driven investments in human capital and public infrastructure were important sources of productivity gains. We conclude that policies that ease constraints on factor markets and promote public investment in people and infrastructure provide the best opportunities for agricultural growth.

Suggested Citation

Mundlak, Yair and Butzer, Rita Christine and Larson, Donald F., Agricultural Dynamics in Thailand, Indonesia and the Philippines. Australian Journal of Agricultural & Resource Economics, Vol. 48, pp. 95-126, March 2004. Available at SSRN: https://ssrn.com/abstract=519906

Yair Mundlak (Contact Author)

Hebrew University of Jerusalem - Department of Agricultural Economics and Management ( email )

P.O. Box 12
Rehovot, 76100
Israel

Rita Christine Butzer

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

Donald F. Larson

Institute for the Theory and Practice of International Relations ( email )

P.O. Box 8795
Williamsburg, VA 23185
United States

HOME PAGE: http://https://sites.google.com/site/decrgdonaldflarson/

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