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Technological Innovation And Total Factor Productivity Growth Of Rice Production In Bangladesh In The Post-Liberalisation Era

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  • DAYAL TALUKDER

    (ICL Graduate Business School, Auckland, New Zealand)

  • LOVE CHILE

    (Auckland University of Technology, Auckland, New Zealand)

Abstract

The objective of this study was to assess the impact of technological innovation on the total factor productivity (TFP) growth of rice in Bangladesh during the post liberalisation era. The study used data from secondary sources and estimated the Data Envelopment Analysis (DEA)-based Malmquist productivity index for assessing the TFP-growth. It also estimated the Cobb-Douglas (C-D) production function using Ordinary Least Square (OLS) regression method for assessing determinants of rice output. The study found that agricultural trade liberalisation positively influenced the TFP-growth of rice through technological innovation in the post-liberalisation era. The increase in the TFP-growth was driven by technological innovation – a cropping shift from local varieties to high yielding varieties (HYV) of rice and reallocation of resources in favour of the HYV-dominated Boro rice production. However, after the first decade the TFP-growth gradually slowed down, which was attributed to the technological contraction or non-improvement and negative productivity of labour. The study suggests that the government should formulate policies to increase investment in research and development for technological innovation, and in human resource development through training and agricultural extension services for the efficient use of inputs to improve TFP-growth in rice production in the future.

Suggested Citation

  • Dayal Talukder & Love Chile, 2018. "Technological Innovation And Total Factor Productivity Growth Of Rice Production In Bangladesh In The Post-Liberalisation Era," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 50-70, December.
    • Handle: RePEc:ntu:ntugeo:vol6-iss2-18-050
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    More about this item

    Keywords

    Total factor productivity (TFP); Malmquist productivity index; rice production; post-liberalisation; Bangladesh;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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