Agriculture Public Spending and Growth in Indonesia

This paper analyzes the trends and evolution of public spending in the agriculture sector in Indonesia, as well as the impact of public spending on agricultural growth. It finds that, in line with empirical work undertaken in other countries, publi...

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Main Authors: Armas, Enrique Blanco, Osorio, Camilo Gomez, Moreno-Dodson, Blanca, Abriningrum, Dwi Endah
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
FAO
GDP
MOA
TAX
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120223091128
http://hdl.handle.net/10986/3263
id okr-10986-3263
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO CREDIT
ACCESS TO FOOD
ACCOUNTING
ACTUAL YIELDS
AGRIBUSINESS
AGRICULTURAL DEVELOPMENT
AGRICULTURAL ECONOMICS
AGRICULTURAL EQUIPMENT
AGRICULTURAL EXTENSION
AGRICULTURAL EXTENSION SERVICES
AGRICULTURAL GROWTH
AGRICULTURAL INPUTS
AGRICULTURAL MARKETS
AGRICULTURAL POLICIES
AGRICULTURAL POLICY
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTS
AGRICULTURAL PROGRAMS
AGRICULTURAL R&D
AGRICULTURAL RESEARCH
AGRICULTURAL SCIENCE
AGRICULTURAL SECTOR
AGRICULTURAL TECHNOLOGIES
AGRICULTURE
AGRICULTURE CREDIT
AGRICULTURE MARKETS
AGRICULTURE ORGANIZATION
AGRICULTURE RESEARCH
AGRICULTURE SECTOR
AGRICULTURE SECTORS
ANIMAL HEALTH
ARABLE LAND
BEAN
BUDGET CONSTRAINTS
CATTLE
CENTRAL BANK
CENTRAL GOVERNMENT SPENDING
CEREALS
COMBINES
COMMODITIES
COMPETITIVENESS
CONSUMERS
CROPPING
CROPS
DEBT
DECENTRALIZATION
DEFICITS
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DIMINISHING RETURNS
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC SURVEYS
ECONOMIES OF SCALE
ELIGIBLE FARMERS
EXPORT
EXPORT PERFORMANCE
EXPORTS
EXTENSION PROGRAMS
EXTERNALITIES
EXTERNALITY
FAO
FARM
FARMER ORGANIZATIONS
FARMERS
FARMLAND
FARMS
FINANCIAL CRISIS
FISCAL POLICY
FIXED COSTS
FOOD CROPS
FOOD PRICES
FOOD SAFETY
FOOD SECURITY
FORESTRY
FRUITS
GDP
GDP PER CAPITA
GENDER
GOVERNMENT EXPENDITURES
GOVERNMENT SPENDING
GRAIN
GRAIN PRICES
GRANTS TO FARMERS
GREEN REVOLUTION
GROSS DOMESTIC PRODUCT
GROSS DOMESTIC PRODUCT PER CAPITA
GROWTH RATE
HIGH YIELDS
HIGH-VALUE PRODUCTS
HOUSEHOLDS
HOUSING
HUMAN CAPITAL
IFPRI
INCOME
INCOME LEVELS
INCOME SUPPORT
INCOMES
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTEREST RATES
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
INTERNATIONAL MARKETS
IRRIGATION
IRRIGATION SYSTEMS
LIVESTOCK
MACROECONOMIC STABILITY
MAIZE
MAIZE YIELDS
MARGINAL PRODUCTIVITY
MARKETING
MARKETING ASSISTANCE
MEATS
MOA
MULTIPLIER EFFECTS
MULTIPLIERS
NATIONAL GOVERNMENTS
NEGATIVE EXTERNALITIES
NEW TECHNOLOGIES
OPPORTUNITY COST
OPPORTUNITY COSTS
POLITICAL ECONOMY
POLLUTION
POSITIVE EXTERNALITIES
POTATOES
POVERTY REDUCTION
PRIVATE GOODS
PRIVATE SECTOR
PRODUCTION INCREASES
PRODUCTION INPUTS
PRODUCTIVITY
PRODUCTIVITY GROWTH
PROPERTY RIGHTS
PUBLIC
PUBLIC DEBT
PUBLIC ECONOMICS
PUBLIC EXPENDITURE
PUBLIC EXPENDITURE REVIEW
PUBLIC EXPENDITURE REVIEWS
PUBLIC EXPENDITURES
PUBLIC FINANCE
PUBLIC FUNDS
PUBLIC GOOD
PUBLIC GOODS
PUBLIC INFRASTRUCTURE
PUBLIC INVESTMENT
PUBLIC INVESTMENTS
PUBLIC RESOURCES
PUBLIC SECTOR
PUBLIC SERVICES
PUBLIC SPENDING
QUALITY STANDARDS
QUARANTINE
RESEARCH & DEVELOPMENT
RESOURCE ALLOCATION
RICE
RICE CULTIVATION
RICE RESEARCH
RICE YIELDS
RISK AVERSE
ROADS
ROOTS
RURAL AREAS
RURAL INFRASTRUCTURE
RURAL POVERTY
RURAL ROADS
SEEDS
SOCIAL WELFARE
TAX
TAX REVENUE
TAX REVENUES
TAXATION
TECHNICAL ASSISTANCE
TECHNOLOGY TRANSFER
TRANSACTION
TRANSITION ECONOMIES
TREASURY
UNITED NATIONS
UNIVERSITIES
VEGETABLES
VOLUME
WATER RESOURCES
spellingShingle ACCESS TO CREDIT
ACCESS TO FOOD
ACCOUNTING
ACTUAL YIELDS
AGRIBUSINESS
AGRICULTURAL DEVELOPMENT
AGRICULTURAL ECONOMICS
AGRICULTURAL EQUIPMENT
AGRICULTURAL EXTENSION
AGRICULTURAL EXTENSION SERVICES
AGRICULTURAL GROWTH
AGRICULTURAL INPUTS
AGRICULTURAL MARKETS
AGRICULTURAL POLICIES
AGRICULTURAL POLICY
AGRICULTURAL PRODUCTION
AGRICULTURAL PRODUCTIVITY
AGRICULTURAL PRODUCTS
AGRICULTURAL PROGRAMS
AGRICULTURAL R&D
AGRICULTURAL RESEARCH
AGRICULTURAL SCIENCE
AGRICULTURAL SECTOR
AGRICULTURAL TECHNOLOGIES
AGRICULTURE
AGRICULTURE CREDIT
AGRICULTURE MARKETS
AGRICULTURE ORGANIZATION
AGRICULTURE RESEARCH
AGRICULTURE SECTOR
AGRICULTURE SECTORS
ANIMAL HEALTH
ARABLE LAND
BEAN
BUDGET CONSTRAINTS
CATTLE
CENTRAL BANK
CENTRAL GOVERNMENT SPENDING
CEREALS
COMBINES
COMMODITIES
COMPETITIVENESS
CONSUMERS
CROPPING
CROPS
DEBT
DECENTRALIZATION
DEFICITS
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DIMINISHING RETURNS
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC SURVEYS
ECONOMIES OF SCALE
ELIGIBLE FARMERS
EXPORT
EXPORT PERFORMANCE
EXPORTS
EXTENSION PROGRAMS
EXTERNALITIES
EXTERNALITY
FAO
FARM
FARMER ORGANIZATIONS
FARMERS
FARMLAND
FARMS
FINANCIAL CRISIS
FISCAL POLICY
FIXED COSTS
FOOD CROPS
FOOD PRICES
FOOD SAFETY
FOOD SECURITY
FORESTRY
FRUITS
GDP
GDP PER CAPITA
GENDER
GOVERNMENT EXPENDITURES
GOVERNMENT SPENDING
GRAIN
GRAIN PRICES
GRANTS TO FARMERS
GREEN REVOLUTION
GROSS DOMESTIC PRODUCT
GROSS DOMESTIC PRODUCT PER CAPITA
GROWTH RATE
HIGH YIELDS
HIGH-VALUE PRODUCTS
HOUSEHOLDS
HOUSING
HUMAN CAPITAL
IFPRI
INCOME
INCOME LEVELS
INCOME SUPPORT
INCOMES
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY RIGHTS
INTEREST RATES
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
INTERNATIONAL MARKETS
IRRIGATION
IRRIGATION SYSTEMS
LIVESTOCK
MACROECONOMIC STABILITY
MAIZE
MAIZE YIELDS
MARGINAL PRODUCTIVITY
MARKETING
MARKETING ASSISTANCE
MEATS
MOA
MULTIPLIER EFFECTS
MULTIPLIERS
NATIONAL GOVERNMENTS
NEGATIVE EXTERNALITIES
NEW TECHNOLOGIES
OPPORTUNITY COST
OPPORTUNITY COSTS
POLITICAL ECONOMY
POLLUTION
POSITIVE EXTERNALITIES
POTATOES
POVERTY REDUCTION
PRIVATE GOODS
PRIVATE SECTOR
PRODUCTION INCREASES
PRODUCTION INPUTS
PRODUCTIVITY
PRODUCTIVITY GROWTH
PROPERTY RIGHTS
PUBLIC
PUBLIC DEBT
PUBLIC ECONOMICS
PUBLIC EXPENDITURE
PUBLIC EXPENDITURE REVIEW
PUBLIC EXPENDITURE REVIEWS
PUBLIC EXPENDITURES
PUBLIC FINANCE
PUBLIC FUNDS
PUBLIC GOOD
PUBLIC GOODS
PUBLIC INFRASTRUCTURE
PUBLIC INVESTMENT
PUBLIC INVESTMENTS
PUBLIC RESOURCES
PUBLIC SECTOR
PUBLIC SERVICES
PUBLIC SPENDING
QUALITY STANDARDS
QUARANTINE
RESEARCH & DEVELOPMENT
RESOURCE ALLOCATION
RICE
RICE CULTIVATION
RICE RESEARCH
RICE YIELDS
RISK AVERSE
ROADS
ROOTS
RURAL AREAS
RURAL INFRASTRUCTURE
RURAL POVERTY
RURAL ROADS
SEEDS
SOCIAL WELFARE
TAX
TAX REVENUE
TAX REVENUES
TAXATION
TECHNICAL ASSISTANCE
TECHNOLOGY TRANSFER
TRANSACTION
TRANSITION ECONOMIES
TREASURY
UNITED NATIONS
UNIVERSITIES
VEGETABLES
VOLUME
WATER RESOURCES
Armas, Enrique Blanco
Osorio, Camilo Gomez
Moreno-Dodson, Blanca
Abriningrum, Dwi Endah
Agriculture Public Spending and Growth in Indonesia
geographic_facet East Asia and Pacific
East Asia and Pacific
Southeast Asia
Asia
Indonesia
relation Policy Research working paper ; no. WPS 5977
description This paper analyzes the trends and evolution of public spending in the agriculture sector in Indonesia, as well as the impact of public spending on agricultural growth. It finds that, in line with empirical work undertaken in other countries, public spending on agriculture and irrigation during the period 1976-2006 had a positive impact on agricultural growth, while public spending on fertilizer subsidies had the opposite effect. The composition of spending patterns in Indonesia over the past decade can partly explain why significant increases in public spending for agriculture have not resulted in a commensurate increase of agricultural production. The paper is structured as follows. Section I presents analytical and empirical findings about the impact of overall public spending on growth, with a particular focus on Indonesia, followed by an analysis of the government's role in agriculture. More precisely, it discusses how public spending can contribute to higher productivity and faster growth in the sector. The section draws lessons from the empirical literature and country examples worldwide, exploring the implications of some of these findings in the Indonesia context. Section II presents the results of an empirical analysis of the impact of agriculture public spending on agriculture gross domestic product per capita growth in Indonesia, using time series analysis with both ordinary least squares and generalized method of moments econometric techniques. Section III analyzes in detail agriculture public spending trends in Indonesia over the period 2000-08, highlighting that a large and increasing share of the spending is being allocated to subsidies (fertilizer, credit, seeds) and to fund transfers to farmers and farmers' groups.
format Publications & Research :: Policy Research Working Paper
author Armas, Enrique Blanco
Osorio, Camilo Gomez
Moreno-Dodson, Blanca
Abriningrum, Dwi Endah
author_facet Armas, Enrique Blanco
Osorio, Camilo Gomez
Moreno-Dodson, Blanca
Abriningrum, Dwi Endah
author_sort Armas, Enrique Blanco
title Agriculture Public Spending and Growth in Indonesia
title_short Agriculture Public Spending and Growth in Indonesia
title_full Agriculture Public Spending and Growth in Indonesia
title_fullStr Agriculture Public Spending and Growth in Indonesia
title_full_unstemmed Agriculture Public Spending and Growth in Indonesia
title_sort agriculture public spending and growth in indonesia
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120223091128
http://hdl.handle.net/10986/3263
_version_ 1764386698229186560
spelling okr-10986-32632021-04-23T14:02:08Z Agriculture Public Spending and Growth in Indonesia Armas, Enrique Blanco Osorio, Camilo Gomez Moreno-Dodson, Blanca Abriningrum, Dwi Endah ACCESS TO CREDIT ACCESS TO FOOD ACCOUNTING ACTUAL YIELDS AGRIBUSINESS AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL EQUIPMENT AGRICULTURAL EXTENSION AGRICULTURAL EXTENSION SERVICES AGRICULTURAL GROWTH AGRICULTURAL INPUTS AGRICULTURAL MARKETS AGRICULTURAL POLICIES AGRICULTURAL POLICY AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTS AGRICULTURAL PROGRAMS AGRICULTURAL R&D AGRICULTURAL RESEARCH AGRICULTURAL SCIENCE AGRICULTURAL SECTOR AGRICULTURAL TECHNOLOGIES AGRICULTURE AGRICULTURE CREDIT AGRICULTURE MARKETS AGRICULTURE ORGANIZATION AGRICULTURE RESEARCH AGRICULTURE SECTOR AGRICULTURE SECTORS ANIMAL HEALTH ARABLE LAND BEAN BUDGET CONSTRAINTS CATTLE CENTRAL BANK CENTRAL GOVERNMENT SPENDING CEREALS COMBINES COMMODITIES COMPETITIVENESS CONSUMERS CROPPING CROPS DEBT DECENTRALIZATION DEFICITS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC SURVEYS ECONOMIES OF SCALE ELIGIBLE FARMERS EXPORT EXPORT PERFORMANCE EXPORTS EXTENSION PROGRAMS EXTERNALITIES EXTERNALITY FAO FARM FARMER ORGANIZATIONS FARMERS FARMLAND FARMS FINANCIAL CRISIS FISCAL POLICY FIXED COSTS FOOD CROPS FOOD PRICES FOOD SAFETY FOOD SECURITY FORESTRY FRUITS GDP GDP PER CAPITA GENDER GOVERNMENT EXPENDITURES GOVERNMENT SPENDING GRAIN GRAIN PRICES GRANTS TO FARMERS GREEN REVOLUTION GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE HIGH YIELDS HIGH-VALUE PRODUCTS HOUSEHOLDS HOUSING HUMAN CAPITAL IFPRI INCOME INCOME LEVELS INCOME SUPPORT INCOMES INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTEREST RATES INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL MARKETS IRRIGATION IRRIGATION SYSTEMS LIVESTOCK MACROECONOMIC STABILITY MAIZE MAIZE YIELDS MARGINAL PRODUCTIVITY MARKETING MARKETING ASSISTANCE MEATS MOA MULTIPLIER EFFECTS MULTIPLIERS NATIONAL GOVERNMENTS NEGATIVE EXTERNALITIES NEW TECHNOLOGIES OPPORTUNITY COST OPPORTUNITY COSTS POLITICAL ECONOMY POLLUTION POSITIVE EXTERNALITIES POTATOES POVERTY REDUCTION PRIVATE GOODS PRIVATE SECTOR PRODUCTION INCREASES PRODUCTION INPUTS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC PUBLIC DEBT PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEW PUBLIC EXPENDITURE REVIEWS PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC FUNDS PUBLIC GOOD PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SERVICES PUBLIC SPENDING QUALITY STANDARDS QUARANTINE RESEARCH & DEVELOPMENT RESOURCE ALLOCATION RICE RICE CULTIVATION RICE RESEARCH RICE YIELDS RISK AVERSE ROADS ROOTS RURAL AREAS RURAL INFRASTRUCTURE RURAL POVERTY RURAL ROADS SEEDS SOCIAL WELFARE TAX TAX REVENUE TAX REVENUES TAXATION TECHNICAL ASSISTANCE TECHNOLOGY TRANSFER TRANSACTION TRANSITION ECONOMIES TREASURY UNITED NATIONS UNIVERSITIES VEGETABLES VOLUME WATER RESOURCES This paper analyzes the trends and evolution of public spending in the agriculture sector in Indonesia, as well as the impact of public spending on agricultural growth. It finds that, in line with empirical work undertaken in other countries, public spending on agriculture and irrigation during the period 1976-2006 had a positive impact on agricultural growth, while public spending on fertilizer subsidies had the opposite effect. The composition of spending patterns in Indonesia over the past decade can partly explain why significant increases in public spending for agriculture have not resulted in a commensurate increase of agricultural production. The paper is structured as follows. Section I presents analytical and empirical findings about the impact of overall public spending on growth, with a particular focus on Indonesia, followed by an analysis of the government's role in agriculture. More precisely, it discusses how public spending can contribute to higher productivity and faster growth in the sector. The section draws lessons from the empirical literature and country examples worldwide, exploring the implications of some of these findings in the Indonesia context. Section II presents the results of an empirical analysis of the impact of agriculture public spending on agriculture gross domestic product per capita growth in Indonesia, using time series analysis with both ordinary least squares and generalized method of moments econometric techniques. Section III analyzes in detail agriculture public spending trends in Indonesia over the period 2000-08, highlighting that a large and increasing share of the spending is being allocated to subsidies (fertilizer, credit, seeds) and to fund transfers to farmers and farmers' groups. 2012-03-19T17:29:20Z 2012-03-19T17:29:20Z 2012-02-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120223091128 http://hdl.handle.net/10986/3263 English Policy Research working paper ; no. WPS 5977 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific Southeast Asia Asia Indonesia