Total factor productivity (TFP) growth of agriculture in Pakistan: Trends in different time horizons
2008
Ali, A. (University of Agriculture, Faisalabad (Pakistan). Dept. of Agricultural Economics) | Mushtaq, K. (University of Agriculture, Faisalabad (Pakistan). Dept. of Agricultural Economics) | Ashfaq, M. (University of Agriculture, Faisalabad (Pakistan). Dept. of Agricultural Economics) | Abedullah (University of Agriculture, Faisalabad (Pakistan). Dept. of Environment and Resource Economics)
The present study estimated total factor productivity (TFP) growth of agriculture sector of Pakistan for the period 1971-2006 by employing Tornqvist-Theil (T-T) index number methodology. Most of the conventional inputs were used in constructing the input index. The output index includes major crops, minor crops, important fruits and vegetables and four categories of livestock products. The study estimated TFP growth rates for different decades. The results showed that TFP growth rate was lowest during the decade of 70s (0.96 percent) and highest during the last six years of the study period (2.86 percent). The decade of 80s and 90s registered TFP growth rate of 2.24 percent and 2.46 percent, respectively. The results also explained that TFP growth contributed about 33 percent to total agricultural output growth during the decade of 70s and this contribution increased up to 83 percent during the last six years of the study period. The contribut ion of TFP growth to total agricultural output growth was 53 and 81 percent during the decades of 80s and 90s, respectively. The study observed that macro level government policies, institutional factors and weather conditions are the major key factors that influenced TFP growth.
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