Agricultural Labour Productivity and Its Determinants in India
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This study attempts to modestly undertake an empirical analysis to understand the issues of agricultural labour productivity measured in different dimensions and their determinants and, accordingly, their implications for agricultural growth. Labour productivity is measured as the ratio of total agricultural output to total labour input which can be located in the broader framework of growth accounting method put forth by Solow. The labour productivity index is estimated across four different time-series dimensions. All the estimated productivity indices except labour productivity index based on seasonal and cyclical components show an increasing trend in labour productivity in agriculture though there are very negligible and marginal variations between various estimates across various dimensions of time-series measurements. It is argued here that probably the factors determining cyclical variations in the agricultural output could be different from what they appear to be for the productivity movements in trend. The estimated model clearly exemplifies that rural literacy, electricity consumption, gross capital formation and weather dummy are the most important determinants of labour productivity in the Indian agriculture during the sample period under study.
KeywordsProductivity determinants Partial factor productivity Productivity indices Rainfall index Weather dummy
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