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Humboldt-Universität zu Berlin - Lebenswissenschaftliche Fakultät - Quarterly Journal of International Agriculture

Quarterly Journal of International Agriculture No. 1/09


Technological bias in Indonesian rice production:
why does agrochemical use increase over time?

Joko Mariyono
Independent researcher of rural and development economics, Tegal, Indonesia


Abstract

At national level, the use of agrochemicals in Indonesia is steadily increasing. There are three possible causes: technological change; analytical model and government policy. The proposition here is that there is a strong relation between analytical model and government policy. This study theoretically and empirically evaluates the analytical model that impacts on agrochemical use. A microeconomic theory of production and an econometric approach are used to determine the correct types of technological change. A set of panel data on rice production from 23 provinces during 1985-2000 are used. The results show that Indonesian rice production undergoes technological regress at a decreasing rate. The technological change shows seed and fertiliser intensive and pesticide saving. The increase in uses of agrochemicals causing non-point source pollution is due partly to the use of a Hicks-neutral technological change, which is supported by government policy during the period.

Keywords: technological bias, agrochemicals, and rice production

JEL: Q16, Q53, C33

Vol. 48 (2009), No. 1: 47-65