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Productivity growth and resource degradation in Pakistan's Punjab - a decomposition analysis

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  • Ali, Mubarik
  • Byerlee, Derek
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    Abstract

    The introduction of green revolution technologies in wheat, and rice production in Asia, in the mid 1960s reversed the food crisis, and stimulated rapid agricultural, and economic growth. But the sustainability of this intensification strategy is being questioned, in light of the heavy use of external inputs, and growing evidence of a slowdown in productivity growth, and degradation of the resource base. The authors address the critical issue of long-term productivity, and the sustainability of Pakistan's irrigated agriculture. To estimate changes in total factor productivity in four production systems of Punjab province, they assemble district-level data on 33 crops, 8 livestock products, and 17 input categories. They find that average annual growth in total factor productivity was moderately high (1.26 percent) for both crops, and livestock for the period 1966-94, but observe wide variation in productivity growth by cropping system. A second, disaggregated data set on soil, and water quality reveals significant resource degradation. The authors use the two data sets to decompose the effects of technical change, and resource degradation through application of a cost function. They find that continuous, and widespread resource degradation (as measured by soil and water quality variables) has had a significant negative effect on productivity, especially in the wheat-rice system, where resource degradation has more than offset the productivity effects of technological change. Degradation of the health of the agro-ecosystem was related in part, to modern technologies, mono-cropping, and mismanagement of water resources. The results call for urgent analysis of technology, and options to arrest the degradation of resources.

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2480.

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    Date of creation: 30 Nov 2000
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    Handle: RePEc:wbk:wbrwps:2480

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    Keywords: Environmental Economics&Policies; Crops&Crop Management Systems; Agricultural Research; Economic Theory&Research; Drylands&Desertification;

    References

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    1. Hulten, Charles R., 1986. "Productivity change, capacity utilization, and the sources of efficiency growth," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 31-50.
    2. Byerlee, Derek & Siddiq, Akmal, 1994. "Has the green revolution been sustained? The quantitative impact of the seed-fertilizer revolution in Pakistan revisited," World Development, Elsevier, vol. 22(9), pages 1345-1361, September.
    3. Thompson, Gary D., 1988. "Choice Of Flexible Functional Forms: Review And Appraisal," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(02), December.
    4. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    5. Hulten, Charles R, 1973. "Divisia Index Numbers," Econometrica, Econometric Society, vol. 41(6), pages 1017-25, November.
    6. Lynam, John K. & Herdt, Robert W., 1989. "Sense and Sustainability: Sustainability as an Objective in International Agricultural Research," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 3(4), December.
    7. Faruquee, Rashid, 1995. "Government's role in Pakistan agriculture : major reforms are needed," Policy Research Working Paper Series 1468, The World Bank.
    8. Stefano Pagiola, 2004. "Environmental and Natural Resource Degradation in Intensive Agriculture in Bangladesh," Others 0405008, EconWPA.
    9. V. Kerry Smith, 1998. "Should Pollution Reductions Count as Productivity Gains for Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 591-594.
    10. Frank M. Gollop & Gregory P. Swinand, 1998. "From Total Factor to Total Resource Productivity: An Application to Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 577-583.
    11. Russell W. Pittman, 1981. "Issue in Pollution Control: Interplant Cost Differences and Economies of Scale," Land Economics, University of Wisconsin Press, vol. 57(1), pages 1-17.
    12. Lynam, John K. & Herdt, Robert W., 1989. "Sense and sustainability: Sustainability as an objective in international agricultural research," Agricultural Economics, Blackwell, vol. 3(4), pages 381-398, December.
    13. Ehui, Simeon K. & Spencer, Dunstan S.C., 1993. "Measuring the sustainability and economic viability of tropical farming systems: a model from sub-Saharan Africa," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 9(4), December.
    14. Robert D. Weaver, 1998. "Measuring Productivity of Environmentally Interactive Technologies: The Case of Agriculture and the Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 595-599.
    15. Ehui, Simeon K. & Spencer, Dunstan S. C., 1993. "Measuring the sustainability and economic viability of tropical farming systems: a model from sub-Saharan Africa," Agricultural Economics, Blackwell, vol. 9(4), pages 279-296, December.
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    Cited by:
    1. Krishna, Vijesh V. & Veettil, Prakashan C., 2014. "Productivity and efficiency impacts of conservation tillage in northwest Indo-Gangetic Plains," Agricultural Systems, Elsevier, vol. 127(C), pages 126-138.
    2. World Bank, 2002. "Pakistan Development Policy Review : A New Dawn?," World Bank Other Operational Studies 15425, The World Bank.
    3. Krishna, Vijesh V. & Aravindakshan, Sreejith & Chowdhury, Apurba & Rudra, Bankim, 2012. "Farmer Access and Differential Impacts of Zero Tillage Technology in the Subsistence Wheat Farming Systems of West Bengal, India," Socioeconomics Program Working Papers 147204, CIMMYT: International Maize and Wheat Improvement Center.
    4. Kim, Kwansoo & Barham, Bradford L. & Coxhead, Ian, 2001. "Measuring soil quality dynamics: A role for economists, and implications for economic analysis," Agricultural Economics, Blackwell, vol. 25(1), pages 13-26, June.
    5. Tiongco, Marites & Dawe, David, 2002. "Long-term Evolution of Productivity in a Sample of Philippine Rice Farms: Implications for Sustainability and Future Research," World Development, Elsevier, vol. 30(5), pages 891-898, May.

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