Inter-District Variations in Agricultural Productivity in India: is There Convergence?

Abstract

The study tries to test the convergence hypothesis in agricultural output by using district level output data over the period 1971 to 2010. Both exploratory (growth analysis with the help of summary statistics and mapping) and confirmatory approaches have been adopted (formal tests: sigma and beta convergence) to understand whether poorer regions are able to catch up with the well-off regions or not. Sub-period analysis has also been carried out to capture the differential effect of changing economic environment. Average productivity has increased significantly both at national and regional level over the last four decades. With significant regional variations, national level growth rate of productivity shows continuous decline during the last four decades. Evidence of sigma convergence is week both at regional and at national level. Our analysis suggests beta convergence. Conditional convergence analysis shows that districts with better initial endowments (irrigation, fertilizers, livestock, road length and agricultural implements) are growing at a higher rate.