Decomposition of Technical Change and Productivity Growth in Indian Agriculture Using Non-Parametric Malmquist Index
Keywords:Total Factor Productivity, Overall Efficiency, Input Biased Technical Change, Scale Efficiency Change, Malmquist Productivity Index
The present study endeavors to analyze the rate of total factor productivity growth and technical progress of Indian Agriculture between the period 1971 to 2004, using a Data Envelopment Analysis. It has been observed that that the productivity growth of Indian agriculture is negative, thus confirms that the entire output growth is contributed by input growth. The decomposition of productivity growth into efficiency change and technical progress reveals that the efficiency change is positively contributing towards the growth of productivity whereas, the negative growth of technology restrict the potential productivity growth in Indian agriculture. Further, it has also been observed that efficiency change is insignificant whereas, the technical change is of Hicks non-neutral type in Indian agriculture.