Contribution to Book
Accounting for the Impact of Local and Spill-in Public Research, Extension and Roads on US Regional Agricultural Productivity, 1980-2004.Productivity Growth in Agriculture: An International Perspective (2012)
This chapter uses 1980-2004 state panel data to assess the impact of local public goods (public agricultural R&D, extension and road infrastructure) on US agricultural productivity growth. It finds that the impact of own-state R&D was greatly enhanced by R&D investments in other states and regions through knowledge spill-ins. Returns to local R&D were also higher when it was coupled with greater local extension activity and road infrastructure. The internal rate of return to public R&D is taken as a measure of the contribution of research expenditures to productivity growth. The estimated local rate of return (taking into account only in-state benefits) was around 13% per year. The social rate of return (which takes into account not only benefits to the state where the R&D was conducted but also benefits of spillovers to other states) was found to be around 45%. Moreover, the levels of R&D spill-ins, extension and road infrastructure were found to play a significant role in explaining the differences in productivity growth rates among the states and regions.
EditorFuglie, K. O., Wang, S. L., Ball, V. E
Citation InformationSun Ling Wang, V. Eldon Ball, Lilyan E. Fulginiti and Alejandro Plastina. "Accounting for the Impact of Local and Spill-in Public Research, Extension and Roads on US Regional Agricultural Productivity, 1980-2004." Productivity Growth in Agriculture: An International Perspective Vol. 2 (2012) p. 13 - 32
Available at: http://works.bepress.com/alejandro-plastina/11/