E3S Web Conf.
Volume 316, 20212nd International Conference on Agribusiness and Rural Development (IConARD 2021)
|Number of page(s)||15|
|Published online||05 November 2021|
Modelling Sustainability Agriculture and Economic Development in Indonesia
1 School of Business, Western Sydney University – Bankstown Campus, Milperra, NSW, Australia
2 School of Business, Western Sydney University – Parramatta City Campus, Parramatta, NSW, Australia
* Corresponding author: firstname.lastname@example.org
Agriculture sustainability plays an essential role in country development. This paper aims to examine whether sustainable agriculture is beneficial to economic development in Indonesia. The empirical analysis employs the autoregressive distributed lag model over the data from 1961-2016. The results show that sustainable agriculture significantly contributes to economic development in the long run for both models. The gross fixed capital and rural population as endogenous variables show the positive relationship in the long run, but technical assistance shows negative results. In the short run, all variables show mixed results in different lags. These findings conclude that agricultural policies are broadly on the right track. However, the government needs to focus more on the agricultural bureaucracy and strengthen its infrastructure.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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