Total Factor Productivity Growth of Rice Production in India: An Analysis Based on Data Envelopment Analysis and Panel Structural Break Test

Dipyaman Pal (), Chandrima Chakraborty and Arpita Ghose
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Dipyaman Pal: Bethune College
Chandrima Chakraborty: Vidyasagar University
Arpita Ghose: Jadavpur University

A chapter in Advances in the Theory and Practice of Data Envelopment Analysis, 2025, pp 207-222 from Springer

Abstract: Abstract The objectives of this paper are i) to estimate Total Factor Productivity Growth (TFPG) of Indian rice production using Biennial Malmquist Index(BMI) of non-parametric method of Data Envelopment Analysis for 1970–71 to 2020–21, considering 11 major rice producing Indian states, ii) to decompose estimated TFPG into its different components: technical changes, efficiency changes and scale efficiency changes to find prime driving sources of TFPG and iii) to find multiple structural breaks in the TFPG series by employing panel structural break test of Ditzen et al. (2021) to check whether there exists any effect of policy change on TFPG or not. The results suggest that for Indian rice production: (i) average annual rate of change of TFPG is 1.84% for the sample period, (ii) decomposition of BMI supports that scale change is the most important factor of TFPG movement. So, there is a scope of improvement in the technical efficiency to push the states to higher growth path, (iii) existence of five structural breaks in TFPG series for the years 1978, 1986, 1994, 2001 and 2008. From the results of the panel structural break analysis it is very much prominent that the policy of green revolution and new agricultural policy 2000 has significant positive effect on TFPG of rice production. On the other hand, liberalization policy introduced in early 1990’s has negative effect on the TFPG of rice production.

Date: 2025
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DOI: 10.1007/978-3-031-98177-7_15

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