Cobb-Douglas Production Function For Measuring Efficiency in Indian Agriculture: A Region-wise Analysis

Pia Ghoshal
Journal article Economic Affairs • December 2017 India

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(English, 8 pages)

Abstract

The paper examines the production efficiency of agricultural system in four regions of India categorized as eastern, western, northern and southern regions using state level data for the period 2005-06 to 2013-14. Stochastic production frontier model using panel data, as proposed by Battese and Coelli (1995), has been used for estimating the efficiency variations taking an integrated effect model into consideration. State level mean efficiency estimates of regions ranges from 0.8824 to 0.3759 for 2005-06 to 2013-14. The statistically significant variables explaining inefficiencies in the agricultural production are total state road length per unit of area and share of agricultural NSDP to state NSDP. The major inputs were institutional credit, net irrigated area and consumption of both fertilizers and pesticides

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Economic Affairs

Economic Affairs, Quarterly Journal of Economics, is a Peer-Review publication based on multi-dis... see more