IDEAS home Printed from https://ideas.repec.org/a/wly/ijfiec/v27y2022i4p4244-4255.html
   My bibliography  Save this article

Agricultural production efficiency of Indian states: Evidence from data envelopment analysis

Author

Listed:
  • Manogna R. L.
  • Aswini Kumar Mishra

Abstract

This paper aims to provide an analysis of the agricultural productivity of food grains across the states of India. Despite agriculture's diminishing role as a share of overall gross domestic product (GDP) in India, it plays a crucial role by providing a large proportion of jobs to the workforce. Acknowledging the central role of agriculture in the economy as well as the diversity between the states in terms of availability of resources, this study analyses the impact of various inputs like land area, fertilizers, electricity and labour use on the production efficiency of food grains at the state level from 2006 to 2017 using Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI). The results highlight the variation in the performance of states with five out of selected 20 states experiencing efficiency under the CCR model of DEA and nine out of 20 states being efficient under the BCC model of DEA. MPI results indicate that 11 out of 20 states have progressed in terms of MPI during the period under consideration. The paper highlights the possibility of increasing agricultural production with optimizing the inputs by focusing on efficient resource deployment and enhanced production management. The paper investigates the relationship between various agricultural inputs and food grain production efficiency using DEA and provides a way to improve on the allocation of these resources across various Indian states.

Suggested Citation

  • Manogna R. L. & Aswini Kumar Mishra, 2022. "Agricultural production efficiency of Indian states: Evidence from data envelopment analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4244-4255, October.
    • Handle: RePEc:wly:ijfiec:v:27:y:2022:i:4:p:4244-4255
    DOI: 10.1002/ijfe.2369
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/ijfe.2369
    Download Restriction: no
    File URL: https://libkey.io/10.1002/ijfe.2369?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Farooq Shah & Wei Wu, 2019. "Soil and Crop Management Strategies to Ensure Higher Crop Productivity within Sustainable Environments," Sustainability, MDPI, vol. 11(5), pages 1-19, March.
    2. L. Rachel Ngai & Christopher A. Pissarides, 2007. "Structural Change in a Multisector Model of Growth," American Economic Review, American Economic Association, vol. 97(1), pages 429-443, March.
    3. Jean-Paul Chavas & Ragan Petrie & Michael Roth, 2005. "Farm Household Production Efficiency: Evidence from The Gambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 160-179.
    4. Shafiq, Muhammad & Rehman, Tahir, 2000. "The extent of resource use inefficiencies in cotton production in Pakistan's Punjab: an application of Data Envelopment Analysis," Agricultural Economics, Blackwell, vol. 22(3), pages 321-330, April.
    5. Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 2001. "Beyond Balanced Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(4), pages 869-882.
    6. Douglas Gollin & Stephen Parente & Richard Rogerson, 2002. "The Role of Agriculture in Development," American Economic Review, American Economic Association, vol. 92(2), pages 160-164, May.
    7. Göran Bergendahl, 1998. "DEA and benchmarks – an application to Nordic banks," Annals of Operations Research, Springer, vol. 82(0), pages 233-250, August.
    8. Deepak K. Ray & Navin Ramankutty & Nathaniel D. Mueller & Paul C. West & Jonathan A. Foley, 2012. "Recent patterns of crop yield growth and stagnation," Nature Communications, Nature, vol. 3(1), pages 1-7, January.
    9. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    10. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    11. Goksel Armagan & Altug Ozden & Selim Bekcioglu, 2010. "Efficiency and total factor productivity of crop production at NUTS1 level in Turkey: Malmquist index approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(3), pages 573-581, April.
    12. Chieko Umetsu & Thamana Lekprichakul & Ujjayant Chakravorty, 2003. "Efficiency and Technical Change in the Philippine Rice Sector: A Malmquist Total Factor Productivity Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 943-963.
    13. Khee Giap Tan & Kartik Rao & Ramkishen Rajan, 2015. "How productive is the agricultural sector across Indian states?," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 14(3), pages 231-248, September.
    14. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    15. Mr. Sergio Rebelo & Ms. Piyabha Kongsamut & Danyang Xie, 2001. "Beyond Balanced Growth," IMF Working Papers 2001/085, International Monetary Fund.
    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. Paramasivam Ramasamy & Umanath Malaiarasan, 2023. "Agricultural credit in India: determinants and effects," Indian Economic Review, Springer, vol. 58(1), pages 169-195, June.

    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. Fedderke, Johannes W., 2018. "Exploring unbalanced growth: Understanding the sectoral structure of the South African economy," Economic Modelling, Elsevier, vol. 72(C), pages 177-189.
    2. Yi Li, 2020. "Internet Development and Structural Transformation: Evidence from China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(1), pages 1-8.
    3. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    4. Margarida Duarte & Diego Restuccia, 2010. "The Role of the Structural Transformation in Aggregate Productivity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 129-173.
    5. Gangopadhyay, Kausik & Mondal, Debasis, 2021. "Productivity, relative sectoral prices, and total factor productivity: Theory and evidence," Economic Modelling, Elsevier, vol. 100(C).
    6. Margarida Duarte & Diego Restuccia, 2020. "Relative Prices and Sectoral Productivity," Journal of the European Economic Association, European Economic Association, vol. 18(3), pages 1400-1443.
    7. Joseph K. Kaboski, 2009. "Education, Sectoral Composition and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 168-182, January.
    8. Reto Foellmi & Josef Zweim�ller, "undated". "Structural Change and the Kaldor Facts of Economic Growth," IEW - Working Papers 111, Institute for Empirical Research in Economics - University of Zurich.
    9. Ju, Jiandong & Lin, Justin Yifu & Wang, Yong, 2015. "Endowment structures, industrial dynamics, and economic growth," Journal of Monetary Economics, Elsevier, vol. 76(C), pages 244-263.
    10. Fabian Eckert & Michael Peters, 2018. "Spatial Structural Change," 2018 Meeting Papers 98, Society for Economic Dynamics.
    11. Cao, Kang Hua & Birchenall, Javier A., 2013. "Agricultural productivity, structural change, and economic growth in post-reform China," Journal of Development Economics, Elsevier, vol. 104(C), pages 165-180.
    12. Chen, Chaoran, 2020. "Technology adoption, capital deepening, and international productivity differences," Journal of Development Economics, Elsevier, vol. 143(C).
    13. Dessy, Sylvain & Mbiekop, Flaubert & Pallage, Stéphane, 2010. "On the mechanics of trade-induced structural transformation," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 251-264, March.
    14. Federico Huneeus & Richard Rogerson, 2020. "Heterogeneous Paths of Industrialization," Working Papers 2020-23, Princeton University. Economics Department..
    15. Hassan, Fadi, 2016. "The price of development: The Penn–Balassa–Samuelson effect revisited," Journal of International Economics, Elsevier, vol. 102(C), pages 291-309.
    16. Garriga, Carlos & Hedlund, Aaron & Tang, Yang & Wang, Ping, 2021. "Rural-urban migration and house prices in China," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    17. Berlingieri, Giuseppe, 2013. "Outsourcing and the rise in services," LSE Research Online Documents on Economics 51532, London School of Economics and Political Science, LSE Library.
    18. Gallipoli, Giovanni & Makridis, Christos A., 2018. "Structural transformation and the rise of information technology," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 91-110.
    19. Ourens, Guzmán, 2017. "Uneven growth in the extensive margin: explaining the lag of agricultural economies," CEPREMAP Working Papers (Docweb) 1704, CEPREMAP.
    20. Yang, Dennis Tao & Zhu, Xiaodong, 2013. "Modernization of agriculture and long-term growth," Journal of Monetary Economics, Elsevier, vol. 60(3), pages 367-382.

    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:wly:ijfiec:v:27:y:2022:i:4:p:4244-4255. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.interscience.wiley.com/jpages/1076-9307/ .

    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.