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