Explaining Growth in Dutch Agriculture: Prices, Public R&D, and Technological Change



development in agriculture. The reduction in public R&D money spent on agriculture during the
recent years and its reallocation to non-traditional agricultural outputs is likely to have a negative
effect on future output growth.

Finally some qualifications should be made with respect to our findings. A number of the
estimated coefficients should be interpreted with caution because they were not significant. This study
only takes public R&D expenditures into account and as such not accounts for R&D expenditures
done by the private commercial sector (e.g. Huffman and Evenson (1993) for evidence to include
both). Moreover, no convergence-term, accounting for the R&D impact generated by public and
private R&D expenditures outside the Netherlands was included in the analysis (spill-in effects).
Finally, the switch to quantity rationing in 1984 (introduction of milk quota) was ‘solved’ in an ad hoc
way. These qualifications not only denote the limits of our research, but also imply suggestions for
future research.

References

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