TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India: Parametric and Non-Parametric Analysis^§

This paper has applied the parametric and non-parametric approaches to estimate the Total Factor Productivity (TFP) growth for major wheat and paddy crop producing states in India for the period 1981–2010. Both the approaches have revealed that the shift due to technological adoption is a vital source for overall productivity growth. Both the approaches used have produced almost similar results at spatial and temporal directions, showing robustness in TFP estimation. Further, the high-yield states, particularly Punjab, have depicted a decline in the TFP growth for wheat and paddy crops in recent times, which raises an alarm on the long-term sustainability of paddy-wheat production system in this Green Revolution star state. An obvious extension to this study would be the application of this approach to incorporate more crops and states or at the district level. Another interesting work could be incorporating higher order policy variables such as subsidies, government investment, variables representing resource endowment, infrastructure, groundwater extraction, etc. in the efficiency equation of SFA.