DRN Vol. 39 No.3
'Reexamine SHS Programs Employment and Entrepreneurial Objectives'
Regulatory Impact Assessment Adoption Determinants: A Diagnostic Framework
Exploring Responses to the Employment Impact of Excise Tax Reform: The Case of the Philippine Tobacco Industry
Mapping Out Employment Opportunities in the Cultural Heritage Sector A Strategic Framework

PIDS WB 2021-0905
Annual Public Policy Conference Webinar 4: Robust and Healthy Workforce and Closing Program
PIDS WB 2021-0904
Annual Public Policy Conference Webinar 3: Green And Inclusive Recovery
PIDS WB 2021-0903
Annual Public Policy Conference Webinar 2: Ethical Business
PIDS WB 2021-0902
Opening Program and Annual Public Policy Conference Webinar 1: Resetting Capitalism
Publication Detail
SEARCA PGPA 2013 7: Investments in Research, Development, and Extension: Implications on TFP

Total factor productivity (TFP) is one of the key drivers of economic growth. An important driver of productivity growth is research, development, and extension (RD&E). Investment in RD&E yields a flow of benefits to producers and consumers over many years. Benefits from RD&E arise when farmers use new technologies to lower their costs or increase the value of their products by improving their quality or other attributes. There was a decreasing trend in RD&E intensity from 2001 to 2004 until an increase was noted in 2005. The average agricultural extension intensity was 0.19 percent. The trend in extension intensity followed a pattern similar to that of total RD&E. Similarly, R&D intensity was 0.20 percent in 2001 and ended at 0.08 percent in 2005, averaging 0.11 percent for the five-year period. This persistently low investment in R&D has contributed partly to the lag in agricultural productivity in the Philippines compared with its Asian neighbors. Using a cost framework, this study measured the contribution of public investments in R&D, extension, production subsidy, and irrigation in reducing rice production cost in the Philippines. The shadow share was used as a measure of marginal return to public investments in determining the need for further investments. This study also decomposed the growth in TFP of rice into scale economy, improvement in capacity utilization due to public investments, and rate of technical change. Results indicated that R&D generated cost savings and improved rice productivity. This implies that further investment in rice R&D is necessary. Results also showed that investment in production subsidy was counterproductive, which supports the call to phase it out. Inefficiencies in extension and irrigation investments were also observed. This suggests that reforms in the current extension system and a re-orientation of irrigation development strategies should be done to reap the potential benefits from these investments.

Southeast Asian Regional Center for Graduate Study and Research in Agriculture
Authors Keywords
Sergio R. Francisco; Flordeliza H. Bordey; public investment planning; total factor productivity; Agricultural extension work -- Case studies; PGPA; upland corn productivity; research and development intensity ratio;
Download PDF Number of Downloads
Published in 2013 and available in the SEARCA K-Shop or Downloaded 163 times since December 04, 2018
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.

To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
If Prefer to self-describe, please specify:
Level of Education:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.