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

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Transition Strategies for Sustainable Community Systems

Part of the book series: The Anthropocene: Politik—Economics—Society—Science ((APESS,volume 26))

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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.

Surya Bhushan, Associate Professor, Development Management Institute (DMI), Patna, Bihar, India; Email: surya.bhushan@gmail.com The author is grateful to Professor K. V. Raju, Director, DMI, especially for developing the livelihoods resilience index, and providing helpful comments and valuable insights and suggestions on the earlier draft. The usual disclaimer applies.

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Notes

  1. 1.

    Bihar has thirty-eight districts, according to the latest data available. The districts notably absent from the analysis due to the non-availability of data are Araria, Kishanganj, Lakhisarai, Nawada, Sheikhpura, Sheohar and Sitamarhi. Arwal was carved out of the Jehanabad District in 2001.

  2. 2.

    Deokar/Shetty (2014) contend that Indian agriculture has been doing far better in the years since 2004–05 due to a series of policy initiatives. First, increased allocations for various departments concerned with the development of agriculture, animal husbandry and agriculture research and education. Second, during 2005–06, a National Horticulture Mission became operational, and it extended the programme beyond fruits and vegetables and embraced medicinal plants and spices. Third, a centrally sponsored scheme called the Support to State Extension Programmes for Extension Reforms was launched in 2005–06. Fourth, in 2005–06 a National Fund for Basic, Strategic and Frontier Application Research in Agriculture and a National Agricultural Innovation Project (in July 2006) were launched. Fifth, the terms of trade began to improve in 2004–05 after rapid increases in procurement prices followed by increases in the international prices of agricultural commodities. Sixth, the launch of the Bharat Nirman project in 2005–06 with a view to upgrading rural infrastructure comprising six components, namely, irrigation, electrification, roads, water supply, housing and telecom connectivity. Finally, a ‘farm credit’ package has continued uninterrupted thereafter and has provided a push to private investment in agriculture.

  3. 3.

    Since productivity growth is defined as output growth divided by the input growth, the contribution of inputs to output growth can be calculated by dividing the output growth index by the Malmquist productivity index. If it is less than one (or in percentage terms negative), then total input actually declines. The output trend growth of agricultural yield growth is calculated by running log-linear regression on time.

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Authors and Affiliations

  1. Development Management Institute (DMI), Patna, Bihar, India

    Surya Bhushan

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Correspondence to Surya Bhushan .

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  1. Professor of Strategic Management, Xavier Institute of Management, Xavier University Bhubaneswar, Bhubaneswar, India

    Amar KJR Nayak

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Bhushan, S. (2019). Sources of Productivity Growth and Livelihoods Resilience in Bihar in the Recent Decade: A District-Level Non-parametric Analysis. In: Nayak, A. (eds) Transition Strategies for Sustainable Community Systems. The Anthropocene: Politik—Economics—Society—Science, vol 26. Springer, Cham. https://doi.org/10.1007/978-3-030-00356-2_19

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