IDEAS home Printed from https://ideas.repec.org/p/eab/develo/22515.html
   My bibliography  Save this paper

Sources of Output Growth in Indian Agriculture during the Post-Reform Period

Author

Listed:
  • K.R. Shanmugam

    (MSE)

  • Vidhya Soundararajan

Abstract

Economic growth has failed to be sufficiently inclusive, particularly after the mid-nineties. Although agriculture is still a single major sector providing livelihood to more than 60 percent of the population, it has lost its growth momentum and the share has been declining continuously for a variety of reasons like low income due to inadequate output growth, low productivity, lack of credit at reasonable rates, natural calamities and unavailability of proper extension services. Realizing the importance of this sector and its current crisis, the Eleventh Plan aims to reverse this trend. Output growth could be possible by increasing input growth, technical progress and improvement in technical efficiency. In order to identify the source of the problem, this paper attempts to decompose the agricultural output growth obtained in 15 major states for the period 1994-95 to 2003-04 into the above three components using the random coefficients frontier production function model. Results of the study indicate that the efficiency has declined over time for all the states and the average technical efficiency is only 72 percent. This means that there is a potential to increase the existing output by 28 percent without increasing inputs.We found that inmost of the states, growth was only due to higher inputs. Investment in extension services along with sustained investment in agricultural research and development, and infrastructure is the need of the hour. West Bengal is the most efficient state in applying labor and fertilizer inputs and also has a very high over all efficiency. This can be linked to the successful land reform policies of the state.

Suggested Citation

  • K.R. Shanmugam & Vidhya Soundararajan, 2008. "Sources of Output Growth in Indian Agriculture during the Post-Reform Period," Development Economics Working Papers 22515, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:22515
    as

    Download full text from publisher

    File URL: http://www.eaber.org/node/22515
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kaliappa Kalirajan & Shashanka Bhide, 2004. "The Post-reform Performance of the Manufacturing Sector in India," Asian Economic Papers, MIT Press, pages 126-157.
    2. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, pages 39-56.
    3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, pages 21-37.
    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. Nabi Abudaldah & Wim Heijman & Pieter Heringa & Pierre v. Mouche, 2015. "Return Of The Icecream Men. A Discrete Hotelling Game," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 9(2), pages 39-48, DECEMBER.
    2. Dilip Saikia, 2014. "Total Factor Productivity In Agriculture: A Review Of Measurement Issues In The Indian Context," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 8(2), pages 45-61, DECEMBER.
    3. repec:ags:ingawp:253314 is not listed on IDEAS
    4. Saikia, Dilip, 2009. "Total Factor Productivity in Indian Agriculture: Some Conceptual and Methodological Issues," MPRA Paper 28578, University Library of Munich, Germany, revised Apr 2010.
    5. repec:ags:ingawp:253311 is not listed on IDEAS

    More about this item

    Keywords

    economic growth; technical efficiency; Eleventh Plan; frontier production function; land reform;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    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:eab:develo:22515. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong). General contact details of provider: http://edirc.repec.org/data/eaberau.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.