Publication: Agriculture Public Spending and Growth : The Example of Indonesia
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2010-04
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2012-08-13
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This note analyzes the trends and evolution of public spending in the agriculture sector in Indonesia, as well as its impact on the growth of agriculture during the period 1976-2006. Public spending on agriculture and irrigation had a positive impact on agriculture growth during that period, whereas public spending on fertilizer subsidies had the opposite effect. As Indonesia continues its efforts to revitalize the agriculture sector, public spending should be directed at improving the provision of public services rather than at subsidizing private inputs.
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“Armas, Enrique Blanco; Osorio, Camilo Gomez; Moreno-Dodson, Blanca. 2010. Agriculture Public Spending and Growth : The Example of Indonesia. Economic Premise; No. 9. © World Bank. http://hdl.handle.net/10986/10195 License: CC BY 3.0 IGO.”
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Publication Agriculture Public Spending and Growth in Indonesia(2012-02-01)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. 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