IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v44y2005i4p729-746.html
   My bibliography  Save this article

Total Factor Productivity Growth and Agricultural Research and Extension: An Analysis of Pakistan's Agriculture, 1960-1996

Author

Listed:
  • Shujat Ali

    (Chief Economist, Planning and Development Bord, Punjab.)

Abstract

Pakistan’s agriculture has grown rapidly since the 1960s, with an average annual growth of about 4 percent over the four decades till the end of the century. Agricultural growth at this rate was sustained by the technological progress embodied in the high-yielding varieties of grains and cotton, with supporting public investment in irrigation, agricultural research and extension (R&E), and physical infrastructure. This rate of agricultural growth has significantly contributed to the overall economic growth of about 6 percent per year during this period. Sustaining this performance presents a considerable challenge for the public policy framework for agriculture, not the least for the agricultural research and extension system in Pakistan. This study analyses the impact of R&E investment on TFP growth in Pakistan’s agriculture within a distributed lag framework. The estimation of the productivity-R&E relationship with an Almon lag provided evidence of a strong relationship, explaining 96 percent of the variation in the TFP index. The marginal internal rate of return on R&E investment is estimated at 88 percent. This rate of return may look unusually high but it is well within the range of returns estimated in the context of developing and developed countries. The high rate of return is an indicator not only of under-investment in R&E but also of the constraints on research and extension services that prevent optimal performance

Suggested Citation

  • Shujat Ali, 2005. "Total Factor Productivity Growth and Agricultural Research and Extension: An Analysis of Pakistan's Agriculture, 1960-1996," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 729-746.
  • Handle: RePEc:pid:journl:v:44:y:2005:i:4:p:729-746
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/2005/Volume4/729-746.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lu, Yao-chi & Quance, Leroy & Liu, Chun-lan, 1978. "Projecting Agricultural Productivity And Its Economic Impact," 1978 Annual Meeting, August 6-9, Blacksburg, Virginia 283557, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Marlys Knutson & Luther G. Tweeten, 1979. "Toward an Optimal Rate of Growth in Agricultural Production Research and Extension," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 70-76.
    3. Khan, Mahmood Hasan & Akbari, Ather Hussain, 1986. "Impact of Agricultural Research and Extension on crop productivity in Pakistan: A production function approach," World Development, Elsevier, vol. 14(6), pages 757-762, June.
    4. George W. Norton & Jeffrey S. Davis, 1981. "Evaluating Returns to Agricultural Research: A Review," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 685-699.
    5. Yao-chi Lu & Leroy Quance & Chun-lan Liu, 1978. "Projecting Agricultural Productivity and Its Economic Impact," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(5), pages 976-980.
    6. Makki, Shiva S. & Thraen, Cameron S. & Tweeten, Luther G., 1999. "Returns to American Agricultural Research: Results from a Cointegration Model," Journal of Policy Modeling, Elsevier, vol. 21(2), pages 185-211, March.
    7. Philip G. Pardey & Barbara Craig, 1989. "Causal Relationships between Public Sector Agricultural Research Expenditures and Output," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 9-19.
    8. Evenson, Robert E. & Pray, Carl E. & Rosegrant, Mark W., 1999. "Agricultural research and productivity growth in India:," Research reports 109, International Food Policy Research Institute (IFPRI).
    9. Mark W. Rosegrant & Robert E. Evenson, 1993. "Agricultural Productivity Growth in Pakistan and India: A Comparative Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 433-451.
    10. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amponsah, Lawrence, 2016. "Modelling the effect of public investment on agricultural productivity in Ghana," MPRA Paper 70924, University Library of Munich, Germany.
    2. Nasir nadeem, Dr. & khalid Mushtaq, Dr., 2010. "Role of Agricultural Research and Extension in Enhancing Agricultural Productivity in Punjab, Pakistan," MPRA Paper 27769, University Library of Munich, Germany.
    3. Yeboah Asuamah, Samuel, 2016. "Modelling the Effect of Investment on Agricultural Productivity in Ghana," MPRA Paper 70606, University Library of Munich, Germany.
    4. Nazir Ullah Khan & Abdur Rehman, 2022. "Decomposition of Total Factor Productivity of Cash Crops in Pakistan: A Malmquist Data Envelop Analysis," Journal of Economic Impact, Science Impact Publishers, vol. 4(1), pages 139-144.
    5. Elahi, Ehsan & Abid, Muhammad & Zhang, Liqin & ul Haq, Shams & Sahito, Jam Ghulam Murtaza, 2018. "Agricultural advisory and financial services; farm level access, outreach and impact in a mixed cropping district of Punjab, Pakistan," Land Use Policy, Elsevier, vol. 71(C), pages 249-260.
    6. Ali Chebil & Aymen Frija & Rached Alyani, 2015. "Measurement of Total Factor Productivity and its Determinants: Case of Wheat Sector in Tunisia," Working Papers 943, Economic Research Forum, revised Sep 2015.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thirtle, C. & Bottomley, P., 1988. "Explaining Total Factor Productivity Change: Returns to R & D in U.K. Agricultural Research," Manchester Working Papers in Agricultural Economics 232809, University of Manchester, School of Economics, Agricultural Economics Department.
    2. Thirtle, Colin, 1986. "The Production Function Approach to the Relationship Between Productivity Growth and R & D," Manchester Working Papers in Agricultural Economics 232791, University of Manchester, School of Economics, Agricultural Economics Department.
    3. Fuglie, Keith & Ballenger, Nicole & Rubenstein, Kelly Day & Klotz, Cassandra & Ollinger, Michael & Reilly, John & Vasavada, Utpal & Yee, Jet, 1996. "Agricultural Research and Development: Public and Private Investments Under Alternative Markets and Institutions," Agricultural Economic Reports 262031, United States Department of Agriculture, Economic Research Service.
    4. Townsend, Rob F. & van Zyl, Johan, 1998. "Estimation of the rate of return to wine grape research and technology development expenditures in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(2), pages 1-22, June.
    5. Taing, William & Ahmadi-Esfahani, Fredoun Z., 2009. "GM technology and the Australian canola," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48191, Australian Agricultural and Resource Economics Society.
    6. Farrington, John & Thirtle, Colin & Henderson, Simon, 1997. "Methodologies for monitoring and evaluating agricultural and natural resources research," Agricultural Systems, Elsevier, vol. 55(2), pages 273-300, October.
    7. Lee, David R. & Rausser, Gordon C., 1992. "The Structure of Research and Transfer Policies in International Agriculture: Evidence and Implications," 1992 Occasional Paper Series No. 6 197731, International Association of Agricultural Economists.
    8. Shiva Makki & Luther Tweeten & Cameron Thraen, 1999. "Investing in Research and Education versus Commodity Programs: Implications for Agricultural Productivity," Journal of Productivity Analysis, Springer, vol. 12(1), pages 77-94, August.
    9. JEAN-PAUL CHAVAS & Michael Aliber & THOMAS L. COX, 1994. "A Nonparametric Analysis of the Source and Nature of Technical Change: the Case of U.S. Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 373, Wisconsin-Madison Agricultural and Applied Economics Department.
    10. Grant M. Scobie & John D. Mullen & Julian M. Alston, 1991. "The Returns To Investment In Research On Australian Wool Production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 179-195, August.
    11. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).
    12. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy.
    13. Alejandro Plastina & Lilyan Fulginiti, 2012. "Rates of return to public agricultural research in 48 US states," Journal of Productivity Analysis, Springer, vol. 37(2), pages 95-113, April.
    14. Adelaja, Adesoji O., 1997. "New Challenges Facing Agricultural And Resource Economics Departments In The Twenty-First Century," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(2), pages 1-13, October.
    15. Andersen, Matthew A., 2019. "Knowledge productivity and the returns to agricultural research: a review," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(2), April.
    16. N. Islam, 2000. "An Analysis of Productivity Growth in Western Australian Agriculture," Economics Discussion / Working Papers 00-15, The University of Western Australia, Department of Economics.
    17. Giannis Karagiannis, 2008. "Commentary," Journal of Productivity Analysis, Springer, vol. 30(1), pages 67-68, August.
    18. Murgai, Rinku, 2001. "The Green Revolution and the productivity paradox: evidence from the Indian Punjab," Agricultural Economics, Blackwell, vol. 25(2-3), pages 199-209, September.
    19. Sellen, Daniel & Goddard, Ellen W., 1997. "Research And Advertising Decisions In An Open Economy: The Case Of Colombian Milds Coffee," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(2), pages 1-13, July.
    20. Asif Reza Anik & Sanzidur Rahman & Jaba Rani Sarker, 2017. "Agricultural Productivity Growth and the Role of Capital in South Asia (1980–2013)," Sustainability, MDPI, vol. 9(3), pages 1-24, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:44:y:2005:i:4:p:729-746. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.