Recent advances in total factor productivity growth measurement in agriculture: a review of literature
by Manas Ranjan Behera; Alka Sharma
International Journal of Business and Globalisation (IJBG), Vol. 23, No. 4, 2019

Abstract: Total factor productivity growth (TFPG) is a topic well documented in the economic development literature. The studies related to this topic can be broadly put into three contradicting hypotheses. First, total factor productivity (TFP) is a measure of technological change; secondly, it is associated with the externalities and scale effects. The third group of researchers is sceptical that total factor productivity measures anything useful. Therefore, the paper attempts to categorise the available literature based on their methodological and computational differences and systematically reviews the different factors that have been attributed for the total factor productivity growth. It was found that the studies used a variety of approaches including estimation of rates of shifts in production and cost functions, non-parametric methods and indexing approaches showing the relative importance of different approaches. However, most of these studies are based on highly aggregative data. Studies based on micro level data on various dimensions and determinants total factor productivity growth in agriculture, especially in the countries which have high disparities in soil quality, climate and topographical conditions as well as socio-economic and physical infrastructure across states and agro-climatic zones are obviously scant.

Online publication date: Tue, 04-Feb-2020

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