Research and productivity in Thai agriculture

Abstract

This paper examines the impact that publicly funded agricultural research has on productivity in crop production within Thailand. It tests empirically the two hypotheses that, first, publicly funded research and development (R&D) in crop production is a significant determinant of total factor productivity (TFP) in the crop sector and, second, that its social rate of return is high. The statistical analysis applies error correction methods to national level time series data for Thailand, covering the period 1970-2006. Emphasis is given to public research in crop production, where most publicly funded agricultural R&D has occurred. The role of international research spillovers and other possible determinants of TFP are also taken into account. The results demonstrate that public investment in research has a positive and significant impact on TFP. International research spillovers have also contributed to TFP. The results support the finding of earlier studies that returns on public research investment have been high. This result holds even after controlling for possible sources of upward biases present in most such studies, due to the omission of alternative determinants of measured TFP. The findings raise a concern over declining public expenditure on crop research, in Thailand and many other developing countries.

Technological spillover in Japanese rice productivity under long-term climate change: evidence from the spatial econometric model

“…Previous studies measured agricultural TFP and empirically analyzed several causative factors including economies of scale (Thirtle et al 2008), research and development (R&D) activities (Alene 2010), human capital (Astorga et al 2011), soil quality (Jayasuriya 2003), and public facilities such as roads, and irrigation and drainage facilities (Suphannachart and Warr 2010;Chen, et al 2008).…”

Integrating Food and Nutrition Security in a Middle‐Income, Globalized, Food‐Exporting Nation: Thailand's Food Policy Challenge

“…The Thai government could consider investing in empowering farmers to better compete through training, agricultural credit, and infrastructure investment (Boselie et al, 2003). Government investment in agricultural research, which in the past has been a strong driver of agricultural productivity improvement, has been falling in recent years (Suphannachart & Warr, 2011). A program of empowering Thai farmers through improving their human and material resources and through improved access to technology, training, and credit for agricultural inputs would allow them to participate in and benefit more fully from trade liberalization and improve food and economic security for Thailand's poorest group (Zamroni, 2006).…”

The Impacts of Agricultural Research and Development Expenditures on Agricultural Total Factor Productivity: Evidence from Selected Latin American Countries

“…They also reported that the long-run elasticity of TFP with respect to climate change was 0.506, while that of R&D expenditure was 0.497. Suphannachart and Warr (2011) investigated the impact of public investment in agricultural R&D on TFP in Thai agriculture for crop production. They used error correction methods for the period of 1970-2006.…”