Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index

Shilpa Chaudhary
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Shilpa Chaudhary: Department of Economics, Delhi School of Economics, Delhi, India

No 215, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: Recognizing the critical role of agricultural sector in the overall growth as well as development performance, this study estimates total factor productivity (TFP) in Indian agriculture at state-level. Using Index of Agricultural Production as the measure of output, changes in TFP are estimated using non-parametric Sequential Malmquist TFP index. The TFP change is decomposed into efficiency change and technical change. It is found that productivity improvements are marked in very few states, and so is technical change. The improvements in efficiency are observed to be low for most of the states and efficiency decline is observed in several states implying huge gains in production possible even with existing technology. In order to achieve higher productivity, it is essential to increase efficiency levels as well as achieve a more even spread of new technology.

Pages: 41 pages
Date: 2012-09
New Economics Papers: this item is included in nep-agr and nep-eff
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Citations: View citations in EconPapers (11)

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