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Public Investment and Agricultural Productivity: A State-wise Analysis of Foodgrains in India

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  • Shyjan D

Abstract

The main objective of the study is to examine the long-run relationship between public investment and foodgrain productivity across the fifteen major states of India. The analysis is confined to the period, 1974-’75 to 2000-’02. In order to examine the long-run impact of public investment on foodgrain productivity, the study uses Koyck’s Autoregressive Distributed Lag model (ADL). The major conclusion of the study is the existence of a positive but lagged effect of public investment on productivity. The lag varies across states; as low as 0.6 years in Maharashtra and as high as more than 12 years in Punjab. Further, the length of the lag is higher in those states where the share of cereals to total foodgrains is higher. The existence of the lag, the study argues, might point to the need for sustained public investment as a means to raise foodgrain productivity in the future [Paper presented at IIT Mumbai for the 43rd Annual Conference of the Indian Econometric society].

Suggested Citation

  • Shyjan D, 2007. "Public Investment and Agricultural Productivity: A State-wise Analysis of Foodgrains in India," Working Papers id:896, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:896
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    Cited by:

    1. D. Shyjan, 2007. "Public investment and agricultural productivity: A State-wise analysis of foodgrains in India," Centre for Development Studies, Trivendrum Working Papers 387, Centre for Development Studies, Trivendrum, India.
    2. Yeboah Asuamah, Samuel, 2016. "Modelling the Effect of Investment on Agricultural Productivity in Ghana," MPRA Paper 70606, University Library of Munich, Germany.
    3. Hrushikesh Mallick, 2007. "Does Energy Consumption Fuel Economic Growth In India?," Working Papers id:1299, eSocialSciences.
    4. Pulapre Balakrishnan, 2007. "Visible hand: Public policy and economic growth in the Nehru era," Centre for Development Studies, Trivendrum Working Papers 391, Centre for Development Studies, Trivendrum, India.

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