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Pattern of farm level capital formation and its impact on the farm production efficiency: An economic analysis in two contrasting regions of Karnataka state, India

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  • Venkataramana, M.N.
  • Reddy, B.V. Chinnappa

Abstract

A study on farm level capital formation in two contrasting scenarios of agricultural development revealed that by and large capital formation was more on large and irrigated farms. The aggregate capital formation was higher in the progressive area than in less progressive area. The priority of investment was more on irrigation development. In the less progressive area, among rainfed farms, investment was more on livestock and perennial crops. The mean technical efficiency was higher in the more progressive area among all types of farms vis-à-vis less progressive area as a result of higher capital formation on productive assets.

Suggested Citation

  • Venkataramana, M.N. & Reddy, B.V. Chinnappa, 2012. "Pattern of farm level capital formation and its impact on the farm production efficiency: An economic analysis in two contrasting regions of Karnataka state, India," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126890, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126890
    DOI: 10.22004/ag.econ.126890
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    References listed on IDEAS

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    1. Kalirajan, K P & Shand, R T, 1999. "Frontier Production Functions and Technical Efficiency Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 13(2), pages 149-172, April.
    2. Rai, K.N. & Grover, D.K. & Nandal, D.S., 1972. "Investment and Saving Pattern in Irrigated and Unirrigated Zones of Haryana State," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 27(4), pages 1-9.
    3. Timmer, C P, 1971. "Using a Probabilistic Frontier Production Function to Measure Technical Efficiency," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 776-794, July-Aug..
    4. Kalirajan, K.P. & Shand, R.T., 1997. "Sources of Output Growth in Indian Agriculture," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 52(4), December.
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    Keywords

    Farm Management; Productivity Analysis;

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