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Impact of Information on Technical Efficiency of Agricultural Production in India

Aritri Chakravarty ()
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Aritri Chakravarty: BASE University, Bengaluru

BASE University Working Papers from BASE University, Bengaluru, India

Abstract: This paper tries to estimate the impact of information use on technical efficiency of agricultural production in India using propensity score matching method. The study utilises cross-sectional data from the 70th Round of NSSO on Situation Assessment Survey of Farmers (2012-13). Technical efficiency is calculated using a novel technique by Cherchye, et.al. (2013) that acknowledges the presence of multiple outputs, output-specific inputs and joint inputs in the data. The results of propensity score matching method show that users of information have a slightly higher efficiency than non-users but the impacts vary largely across different sources of information. The findings hint at a source effect working at large that tends to dampen the true effect of information. Using information from private sources has the largest impact while media has a smaller impact. Public sources don’t show a statistically significant impact, may be due to constraints like lack of infrastructure, manpower and monitoring. Nevertheless, it does not undermine their importance but suggests that they might work through indirect channels that require further exploration.

Keywords: Agriculture; Information Use; Technical Efficiency; Data Envelopment Analysis; Propensity Score Matching JEL Classification- D24; Q12; Q16 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2022
New Economics Papers: this item is included in nep-agr, nep-dev and nep-eff
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