Agricultural Productivity and Sources of Growth in South Asia

Abstract

Estimates of partial factor productivity growth for rice and wheat in India, Bangladesh, and Pakistan show relatively rapid growth in yields per hectare since adoption of modern rice and wheat varieties began in the mid to late 1960s (Byerlee, Rosegrant). While partial factor productivity growth for rice and wheat in South Asia has been extensively analyzed, there is relatively little understanding of total factor productivity growth and the sources of productivity growth in the crops sector, or of the relative contribution to output growth from productivity growth compared to increased factor use. This paper assesses total factor productivity (TFP) growth in India, examines the sources of productivity growth, and estimates the rates of return to public investments in research and extension. A comparison is made with results for Bangladesh (Dey and Evenson) and Pakistan (Azam, Bloom, and Evenson). The paper describes the methodology for estimation of TFP, decomposition of TFP, and estimation of rates of return to public investments; describes the data; and presents results and policy implications.