An Analysis of Total Factor Productivity, Factor demand, and Profit of India’s Agriculture (original) (raw)
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South Asia Economic Journal, 2018
The study estimates the technical efficiency (TE) of agricultural production in India using production frontier model for both cross-section and panel data for the years 1999 and 2007. Given the persistent low productivity of agriculture in India, there is a serious need to identify the determining factors for technological lock-in for agricultural production in order to accelerate sustainable productivity and technical efficiency. The model claims that farmer’s education, household’s production process, proportion of irrigated area covered by canals, availability of wells, yielding variety of lands, government services, agricultural expenditure by local government and women reservations in local government significantly contribute to efficiency in resource utilization in farm production. Traditional techniques such as ‘learning by doing’ is, generally, preferred than the adoption of new technologies for agricultural production. It makes a constraint of technological lock-in. JEL: C...
Agricultural Growth in India: Examining the Post-Green Revolution Transition
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Propellers of Agricultural Productivity in India
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The influence of agricultural technologies on the growth of agricultural value-added based on time series data of Bihar (India) over the period 1990-2016 has been examined in this paper. The technological progress appears to be a major determinant of boosting the potential productivity of land and affecting positively the economic growth. The results indicated that there are significant and certain benefits from the utilization of a system of technological innovations including mechanization, renewed capital stocks, as well as transfer of new knowledge to farmers' and permanent cropping practices. Farming practices involving crop rotation, multi-cropping, and agro forestry are recommended to sustain agricultural sustainability since they seem to be economically viable and environmentally friendly. It was found that technological innovations pertaining to soil conditions, irrigation systems and chemical fertilizers might be beneficial to agricultural production growth in the long-term when they are managed in accordance with soil characteristics and in a balanced way. The results also showed that the labour force, the forest area, the amount of credits to agriculture, and the amount of energy consumed to power irrigation are likely to be insignificant to boost directly the growth of agricultural value-added. Thus, it is recommended that Bihar makes a large scale investment in agricultural capital and carry on renewal at opportune moments so as to keep steady the positive trend of the agricultural growth over the years. The investment may be in terms of mechanized technologies, supporting infrastructure and appropriating the knowledge relating to their management; and adopting new farming technologies and practices involving crop rotation, multicropping and agro-forestry so as to sustain the growth of agricultural value added.
India agriculture has been experiencingdecliningproductivity rates owing to a misallocation of resources in the domain of agriculture. Despitevarious interventions and policies adopted by the government , the benefits have been limited to certain pockets of India. This has slowed the pace of growth of agricultural productivity. The paper examines the trends of agricultural productivity of India in the global scenario. The importance of irrigation in productivity has been established by drawing interstate disparities in rice production of India and analysing the irrigational scenario in India. It has also been foundthat a higherlevel of farmmechanisation corresponds to a greaterproductivity, through an interstate comparison of yield of wheat and an analysis of the global scenario.The important aspects of the R&D scenario arebrought out through a inter-country examination of investment trends. The weakness of the Indian agricultural R&D isportrayedthroughanalysing the budgetallocation and researchintensity. The innovative solutions to bolsterproductivityisshownthrough case studies on four countries. The contractfarming in Indonesia , PPP(Public-Privatepartnership) for agricultural R&D in Egypt ,and desalination of water for irrigation in Spain are discussed to highlight the need for a paradigm shift fromtraditionalmodels to contemporarymodels for increasing agriculture productivity.
1989
A frontier production function of Cobb-Douglas type is defined for panel data, Yit = exp(xit~ + Vit-Ui) ' t = 1,2,...,Ti; i = 1,2,...,N, where the Vit-random variables are assumed to be independent and identically distributed as N(0, o~) random variables, independent of the non-negative U.-random variables, which are assumed to be independent and identically 1 distributed truncations (at zero) of the N(D, 0 2) distribution. The random variable, U i, contributes to the technical inefficiency of the i-th firm for the T. time periods for which observations are 1 available. It is assumed that these firm effects are time invariant. The numbers of observations on the different firms are not required to be the same. The technical efficiency for the i-th firm is defined in terms of the ratio of its mean production to the corresponding mean production if the firm effect was zero. A predictor for this measure of technical efficiency is presented. The model is applied in the analysis of farm-level data from an Indian village involved in ICRISAT's Village Level Studies. The dependent variable involved is gross total value of output for individual farmers in the agricultural years for which data are available. The independent variables depend on the hectares of irrigated and unirrigated land, hours of family and hired labour, hours of bullock labour and the value of input costs, such as fertilizer, organic matter, pesticides and machinery costs. Hypotheses, such as the homogeneity of family and hired labour, are considered. Predictions of the productive efficiency of individual farmers are presented.
The paper examines the production efficiency of agricultural system in regions of India using state level data for the period 1990-91 to 2004-05 and for 2005-06 to 2013-14. Stochastic production frontier model using panel data, as proposed by Battese and Coelli (1995), has been used for estimating the efficiency variations taking an integrated effect model into consideration. State level mean efficiency estimates ranges from 0.9660 to 0.4369 during 1990-91 to 2004-05 and from 0.8648 to 0.4805 for 2005-06 to 2013-14. The statistically significant efficiency variables are rate of rural literacy, rate of rural technical education, total state road length per unit of area and share of agricultural NSDP to state NSDP and the major inputs were net irrigated area and consumption of pesticides for the period 1990-91 to 2004-05. For the period 2005-06 to 2013-14, institutional credit, consumption of fertilizers and consumption of pesticides shares a significant and positive relation with the level of production. The total state road length per unit of area and share of agricultural NSDP to state NSDP are found to reduce inefficiency in agricultural production.