Productivity Growth in Indonesian Agriculture, 1961-2000
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We use an index number approach to measure total factor productivity (TFP) growth in
Indonesian crop and livestock agriculture between 1961-2000. A Tornqvist index is
developed to minimize biases that may result from relative price changes in factor and
output weights. The results indicate that agricultural TFP growth accelerated in the 1970s
but was halted in the late 1990s. Agricultural productivity growth was not limited to rice
but also extended to other food and horticultural crops.