Sources of Productivity Growth and Livelihoods Resilience in Bihar in the Recent Decade: A District-Level Non-parametric Analysis

Abstract

This chapter applies the non-parametric data envelopment approach (DEA) to estimate Total Factor Productivity (TFP) growth rate for agricultural output during the period 2000–2012 across districts of Bihar. This approach finds that the shift in the frontier as well as improved efficiency play an important role as a source of productivity growth, suggesting that technological adoption and catching up may be a vitally important source for overall productivity growth. The approach identifies the frontier districts in terms of agricultural production. Using the geographically linked resources at district level, namely, bio-physical, social, economic and health resources, this chapter also develops a Livelihoods Resilience Index (LRI) at district level to explain the association with agricultural TFP growth. The positive association identified warrants further investigation of a smaller unit, say, household level, to explain the rural development dynamics in the predominantly agricultural and rural state.