Transformation and Sources of Growth in Southeast Asian Agriculture

Abstract

Abstract:Over the past few decades, agriculture in Southeast Asia has experienced robust growth and undergone a significant structural transformation, albeit at a different pace in different countries in the region. This paper aims to understand the process of agricultural transformation and growth in Southeast Asia. The findings of this study show that, driven by technological change, area expansion and diversification, agriculture has grown faster in low-income countries in the region. In contrast, agricultural growth in high-income countries has been slow and driven by price increases, mainly of export-oriented commercial crops such as oil palm, rubber and coconut—alongside expansion of cropped area under these crops. In view of the fixed supply of land and high volatility in global food prices, the area- and price-driven growth is not sustainable in the long run. For efficient, sustainable and inclusive growth, exploiting the potential of existing and frontier technologies and diversification of production portfolio holds greater promise.