Total Factor Productivity in Andhra Pradesh Agriculture

N. Chandrasekhara Rao

Agricultural Economics Research Review, 2005, vol. 18, issue 01

Abstract: The variations in the indices of total factor productivity in the crop sector, foodgrain crops and non-foodgrain crops in Andhra Pradesh have been studied, and the contribution of the total factor productivity in the state during 1980-81 to 1999-2000 has been evaluated. Tornquist-Theil Index has been used to calculate the index of total factor productivity. The average annual index of total factor productivity during the post-reform period has been found five per cent less than that during pre-reform period in the state in the crop sector as a whole. In the case of non-foodgrains, it has been found nine per cent less than that during the pre-reform period, while in case of foodgrains, it is less than 100 during both the periods. The contribution of total factor productivity to yield growth has been found to be a healthy 31 per cent in the pre-reform period. An absolute decline (–37) has been noted during the post-reform period in the crop sector of the state. The absolute decline in the contribution of technical change has been drastic in the case of non-foodgrain crops in the state during the post-reform period. This absolute decline in total factor productivity seems to be one of the main reasons for the distress of farmers in the state which has been manifesting in the form of suicides since the late-1990s.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aerrae:58410

DOI: 10.22004/ag.econ.58410

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