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

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  • Shilpa Chaudhary

    (Department of Economics, Delhi School of Economics, Delhi, India)

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.

Suggested Citation

  • Shilpa Chaudhary, 2012. "Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index," Working papers 215, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:215
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    3. Suresh, A., 2013. "Technical Change and Efficiency of Rice Production in India: A Malmquist Total Factor Productivity Approach," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(Conferenc).
    4. Tulika Bhattacharya & Meenakshi Rajeev & Indrajit Bairagya, 2018. "Are high-linked sectors more productive in India? An analysis under an input–output framework," Indian Economic Review, Springer, vol. 53(1), pages 333-367, December.
    5. Shittu, Adebayo M. & Odine, Agatha I., 2014. "Agricultural Productivity Growth in Sub-Saharan Africa, 1990-2010: the role of Investment, Governance and Trade," Conference papers 332439, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Sai, Rockson & Lin, Boqiang, 2022. "Productivity assessment of power generation in Kenya: What are the impacts?," Energy, Elsevier, vol. 254(PA).
    7. Rekha Misra & Pallavi Chavan & Radheshyam Verma, 2016. "Agricultural Credit in India in the 2000s: Growth, Distribution and Linkages with Productivity," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(2), pages 169-197, May.
    8. Suresh, A. & Reddy, A.A., 2016. "Total Factor Productivity of Major Pulse Crops in India: Implications for Technology Policy and Nutritional Security," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 29(Conferenc).
    9. Kathayat, Babita & Dixit, Anil K & Chandel, B S, 2021. "Inter-state variation in technical efficiency and total factor productivity of India’s livestock sector," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 34(Conferenc), October.
    10. Kurup, Suresh & Jha, Girish & Singh, Alka, 2015. "Technical and efficiency changes in oilseed sector in India: Implications for policy," 2015 Conference, August 9-14, 2015, Milan, Italy 212017, International Association of Agricultural Economists.
    11. R, Sendhil & P, Ramasundaram & P, Anbukkani & Singh, Randhir & Sharma, Indu, 2015. "Trends and Determinants of Research Driven Total Factor Productivity in Indian Wheat," 2015 Conference, August 9-14, 2015, Milan, Italy 212491, International Association of Agricultural Economists.

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