Agriculture Public Spending and Growth : The Example of Indonesia

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World Bank, Washington, DC

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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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AGRICULTURAL DEVELOPMENT, AGRICULTURAL PRODUCTION, AGRICULTURE, ANIMAL HEALTH, CENTRAL GOVERNMENT SPENDING, CONSUMERS, DECENTRALIZATION, ECONOMETRICS, ECONOMIES OF SCALE, EXTENSION, EXTENSION SERVICES, FARMERS, GDP, GDP PER CAPITA, GROWTH RATE, INCOME LEVELS, INCOME SUPPORT, INCOMES, MARKETING, OPPORTUNITY COST, OPPORTUNITY COSTS, PER CAPITA INCOME, POLITICAL INSTITUTIONS, POSITIVE EXTERNALITIES, POVERTY REDUCTION, PRIVATE GOODS, PRIVATE SECTOR, PRODUCTION INPUTS, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROVINCIAL GOVERNMENTS, PUBLIC, PUBLIC ECONOMICS, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEW, PUBLIC GOODS, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC SPENDING, PUBLIC WORKS, ROADS, SOCIAL WELFARE, VALUE ADDED

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