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

Abstract

This article analyses the role of research and development (R&D) in Australia's broadacre farming by using the semi-parametric smooth coefficient model proposed by Li et al. (2002). 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.

Productivity versus environmental sustainability: A broadscale assessment of freshwater aquaculture's technical efficiency and ecological efficiency in China's inland provinces

“…Moreover, convergence analysis is a tool to characterize development and evolution pathways (Ahmed et al, 2017; Khan et al, 2018; Yang et al, 2017). Such analysis would assist us to answer important questions such as whether lagging regions can eventually catch up with advanced ones (Desli, 2009; Kounetas et al, 2021).…”