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Public investment and agricultural productivity: A State-wise analysis of foodgrains in India

  • D. Shyjan

    (Centre for Development Studies
    Institute of Economic Growth)

Registered author(s):

    The main objective of the study is to examine the long-run relationship between public investment and foodgrain productivity across the fifteen major states of India. The analysis is confined to the period, 1974-'75 to 2005-'06. In order to examine the long-run impact of public investment on foodgrain productivity, the study uses Koyck's Autoregressive Distributed Lag model (ADL). The study observes that the productivity levels are higher in those states where the initial investments were above the national average. The major conclusion of the study is the existence of a positive but lagged effect of public investment on productivity. The lag varies across states; as low as 0.5 years in Gujarat and as high as more than 10 years in Punjab, Haryana and Kerala. The existence of the lag, the study argues, might point to the need for sustained public investment as a means to raise foodgrain productivity in the future.

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    File URL: http://www.cds.edu/wp-content/uploads/2012/09/wp387.pdf
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    Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 387.

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    Length: 53 pages
    Date of creation: Jul 2007
    Date of revision:
    Handle: RePEc:ind:cdswpp:387
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    1. Sunil Mani, 2005. "Keeping pace with globalisation innovation capability in Korea's telecommunications equipment industry," Centre for Development Studies, Trivendrum Working Papers 370, Centre for Development Studies, Trivendrum, India.
    2. Boyce, James K, 1986. "Kinked Exponential Models for Growth Rate Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(4), pages 385-91, November.
    3. Dibyendu S. Maiti, 2006. "Organisational Morphology of Rural Industries in Liberalised India: A Study of West Bengal," Working Papers id:746, eSocialSciences.
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