Economic analysis of total factor productivity in agriculture in Konkan region, Maharashtra

This study is based on the secondary data collected from various government publications on parameters of agricultural development and their contributions towards the total factor productivity in agriculture in the Konkan region for the period 1980–81 to 1999–2000. During 1980–90 (decade I), the growth has been found higher (0.912%) in total input index (TII) than total output index (TOI) (0.883%), resulting in a negative total factor productivity (TFP) growth (−0.02%). During 1990–2000 (decade II), the growth has been less (0.997%) in TII than in TOI (1.006%), turning out to be a positive (0.009%) TFP growth. For the entire period (1980–2000), the growth in TII and TOI has been found as 0.95 and 0.94 per cent per annum, respectively while growth in TFP (−0.0082%) has been found negative. The value for the coefficient of determination has been found as 0.67 which indicates that 67 per cent variation in TFP could be explained by the factor under study. In the Konkan region, significant sources of TFP growth have been identified as (with elasticity coefficients in the brackets): market (−0.19%), credit (−0.0096%), rainfall (0.31%), fertilizer (0.32%), net irrigated area (0.22%), tractor (1.96%), and power tiller (1.27%). The contribution of these variables has been 0.29, 0.17, 0.07, 0.27, 0.22, 50.18 and 48.78 per cent, respectively.