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    Does R&D spur productivity growth in Australia’s broadacre agriculture? A semi-parametric smooth coefficient approach

    266355.pdf (810.5Kb)
    Access Status
    Open access
    Authors
    Khan, F.
    Salim, Ruhul
    Sun, K.
    Date
    2018
    Type
    Journal Article
    
    Metadata
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    Citation
    Khan, F. and Salim, R. and Sun, K. 2018. Does R&D spur productivity growth in Australia’s broadacre agriculture? A semi-parametric smooth coefficient approach. Applied Economics. 50 (47): pp. 5076-5093.
    Source Title
    Applied Economics
    DOI
    10.1080/00036846.2018.1470316
    ISSN
    0003-6846
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/69198
    Collection
    • Curtin Research Publications
    Abstract

    © 2018 Informa UK Limited, trading as Taylor & Francis Group This article analyses the role of research and development (R & D) in Australia’s broadacre farming by using the semi-parametric smooth coefficient model. While the conventional production function approach only captures the direct effects of R & D, this methodology captures both the direct impact of a change in R & D on output and the indirect impact through changes in efficiency of use of factor inputs in the production process. Moreover, technical inefficiency is introduced in the model allowing it as a function of R & D. Using a unique state-level dataset covering the period 1995–2007, this empirical study finds that once both the direct and indirect effects are taken into consideration, R & D investments significantly increase outputs. The results also show that there are substantial variations in the effects of R & D on output across the state-level average farm through technology parameters as well as through technical inefficiency. Such variations need to be taken into account when designing policies for investing public R & D in agriculture.

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