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Production Efficiency in Indian Agriculture: An Assessment of the Post Green Evolution Years

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  • Subhash C. Ray

    (University of Connecticut)

  • Arpita Ghose

    (Jadavpur University)

Abstract

In this paper we use the nonparametric approach of Data Envelopment Analysis (DEA) to obtain Pareto-Koopmans measures of technical efficiency of individual states in India over the years 1970-71 through 2000-01 in a multi-output, multi-input model of agricultural production. The Pareto-Koopmans measure is a complete measure of efficiency that reflects all unrealized potential for increasing \textit{any} output and decreasing \textit{any} input that the firm has failed to exploit. In our empirical analysis, we disaggregate overall efficiency into two distinct components representing output and input efficiencies and identify the contributions of individual outputs and inputs to the measured level of overall efficiency. Because introduction of modern inputs has been a major component of the process of modernization of Indian agriculture, we examine to what extent different states succeeded in utilizing the modern inputs compared to the traditional inputs. Finally, we use regression analysis to explain variations in efficiency across states in terms of differences in various infra-structural, institutional, and demographic factors.

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Bibliographic Info

Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2010-26.

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Length: 30 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:uct:uconnp:2010-26

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Keywords: Data Envelopment Analysis; Pareto-Koopmans Efficiency; Modern and traditional inputs.;

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  1. Tadesse, Bedassa & Krishnamoorthy, S., 1997. "Technical efficiency in paddy farms of Tamil Nadu: An analysis based on farm size and ecological zone," Agricultural Economics, Blackwell, vol. 16(3), pages 185-192, August.
  2. Dietrich Vollrath, 2007. "Land Distribution and International Agricultural Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 202-216.
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