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

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


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.


TFP Malmquist DEA Non-parametric Agriculture Bihar Livelihoods resilience index 


  1. Acharya, S.S., 1997: “Agricultural Price Policy and Development: Some Facts and Emerging Issues”, in: Indian Journal of Agricultural Economics, 52, 1: 1–27.Google Scholar
  2. Acharya, S.S., 2006: “Sustainable Agriculture and Rural Livelihoods”, in: Agricultural Economics Research Review, 19 (July–December): 205–217.Google Scholar
  3. Alkire, S.; Foster, J., 2011: “Understandings and Misunderstandings of Multidimensional Poverty Measurement”, The Journal of Economic Inequality, 9, 2: 289–314.CrossRefGoogle Scholar
  4. Ashley, C.; Carney, D., 1999: Sustainable Livelihoods: Lessons from Early Experience (Nottingham: Russell Press Ltd.): 1–64.Google Scholar
  5. Bhushan, S., 2014: “Agricultural Productivity and Environmental Impacts in India: a Parametric and Non-parametric Analysis” (PhD Dissertation, New Delhi, Jawaharlal Nehru University).Google Scholar
  6. Bhushan, S., 2016: “TFP Growth of Wheat and Paddy in Post-Green Revolution Era in India: Parametric and Non-Parametric Analysis”, in: Agricultural Economics Research Review, 29, 1: 27–40.CrossRefGoogle Scholar
  7. Boserup, E., 1965: The Conditions of Agricultural Growth. The Economics of Agrarian Change under Population Pressure (London: George Allen & Unwin).Google Scholar
  8. Brooks, K.; Guasch, J.L.; Braverman, A.; Csaki, C., 1991: “Agriculture and the Transition to the Market”, in: Journal of Economic Perspectives, 5, 4: 149–161.CrossRefGoogle Scholar
  9. CACP, 1999–2016: Comprehensive Scheme for the Study of Cost of Cultivation of Principal Crops in India (New Delhi: Commission For Agricultural Costs and Prices, Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India).Google Scholar
  10. Cassidy, L.; Barnes, G., 2012: “Understanding Household Connectivity and Resilience in Marginal Rural Communities through Social Network Analysis in the Village of Habu, Botswana”, in: Ecology and Society, 17: 4–11.Google Scholar
  11. Caves, D.W.; Christensen, L.R.; Diewart, W.E., 1982: “The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity”, in: Econometrica, 50, 6: 1,393–1,414.CrossRefGoogle Scholar
  12. Census, 2011: Ministry of Home Affairs (New Delhi: Government of India).Google Scholar
  13. Cervantes-Godoy, D.; Dewbre, J., 2010: Economic Importance of Agriculture for Poverty Reduction, OECD Food, Agriculture and Fisheries Working Chapters, No 23.Google Scholar
  14. Chambers, R.; Conway, G.R., 1992: Sustainable Rural Livelihoods: Practical Concepts for the 21st Century. Discussion Chapter 296 (Brighton: Institute of Development Studies).Google Scholar
  15. Chand, R.; Kumar, P.; Kumar, S., 2011: “Total Factor Productivity and Contribution of Research Investment to Agricultural Growth in India”, Policy Paper No 25 (New Delhi: National Centre for Agricultural Economics and Policy Research).Google Scholar
  16. Charnes, A.; Cooper, W.W.; Rhodes, E., 1978: “Measuring the Efficiency of Decision Making Units”, in: European Journal of Operational Research, 2: 429–444.CrossRefGoogle Scholar
  17. Coelli, T.J.; Rao, D.S.P.; O’Donnell, C.J.; Battese, G.E., 2005: An Introduction to Efficiency and Productivity Analysis (Heidelberg: Springer).Google Scholar
  18. Datt, G.; Ravallion, M., 1998: “Farm Productivity and Rural Poverty in India”, in: Journal of Development Studies, 34, 4: 62–85.CrossRefGoogle Scholar
  19. Deokar, B.K.; Shetty, S.L., 2014: “Growth in Indian Agriculture Responding to Policy Initiatives since 2004–05”, Economic and Political Weekly, Supplement: Review of Rural Affairs, XLIX, 26, 27 (28 June): 101–104.Google Scholar
  20. Desai, B.M.; Namboodiri, N.V., 1997: “Determinants of Total Factor Productivity in Indian Agriculture”, in: Economic and Political Weekly (27 December): A165–A171.Google Scholar
  21. DFID, 2000: Sustainable Livelihoods Guidance Sheets (London: Department for International Development); at: (10 September 2016).
  22. Donohue, Caroline; Biggs, E., 2015: “Monitoring Socio-Environmental Change for Sustainable Development: Developing a Multidimensional Livelihoods Index (MLI)”, in: Applied Geography, 62: 391–403CrossRefGoogle Scholar
  23. Ellis, F., 2000: Rural Livelihoods Diversity in Developing Countries (Oxford: Oxford University Press).Google Scholar
  24. Färe, R.; Grosskopf, S.; Norris, M.; Zhang, Z., 1994: “Productivity Growth, Technical Progress, and Efficiency Change in Industrial Countries”, in: American Economic Review, 84, 1: 66–89.Google Scholar
  25. Farrell, M., 1957: “The Measurement of Productive Efficiency”, in: Journal of Royal Statistical Society, Series A, CXX, 3: 253–290.Google Scholar
  26. Foster, A.D.; Rosenzweig, M.R., 1996: “Technical Change and Human Capital Returns and Investments: Evidence from the Green Revolution”, in: American Economic Review, 86, 4: 931–953.Google Scholar
  27. Himanshu, L.P.; Mukhopadhyay, A.; Murgai, R., 2011: Non-farm Diversification and Rural Poverty Decline: A Perspective from Indian Sample Survey and Village Study. Working Chapter 44 (London: Asia Research Centre, London School of Economics and Political Science).Google Scholar
  28. Hulten, C.R., 2001: “Total Factor Productivity: A Short Biography”, in: Hulten, Charles R.; Dean, E.R.; Harper, M.J. (Eds.), New Developments in Productivity Analysis (Chicago: University of Chicago Press).Google Scholar
  29. Jannuzi, F.T., 1974: Agrarian Crisis in India: The Case of Bihar (New Delhi: Sangam Books).Google Scholar
  30. Joshi, P.K.; Gautam, M.; Tripathi, G., 2011: Constraints and Opportunities for Sustainable Agricultural Production in Bihar. Workshop on Policy Options and Investment Priorities for Accelerating Agricultural Productivity and Development in India, 10–11 November 2011 (New Delhi: India International Centre).Google Scholar
  31. Kalirajan, K.P.; Shand, R.T., 1997: “Sources of Output Growth in Indian Agriculture”, in: Indian Journal of Agricultural Economics, 52, 4: 693–706.Google Scholar
  32. Kishore, A., 2004: Understanding Agrarian Impasse in Bihar”, in: Economic and Political Weekly, XXXIX, 31 (31 July): 3,484–3,491.Google Scholar
  33. Krantz, L., 2001: The Sustainable Livelihood Approach to Poverty Reduction: An Introduction, Stockholm: Sida. Division for Policy and Socio-Economic Analysis.Google Scholar
  34. Kumar, P.; Kumar, A.; Mittal, S., 2004: “Total Factor Productivity of Crop Sector in the Indo-Gangetic Plain of India: Sustainability Issues Revisited”, in: Indian Economic Review, 39, 1: 169–201.Google Scholar
  35. Kumar, P.; Singh, N.P.; Mathur, V.C., 2006: “Sustainable Agriculture and Rural Livelihoods: A Synthesis”, in: Agricultural Economics Research Review, 19: 1–22.Google Scholar
  36. Lewis, W.A., 1954: “Economic Development with Unlimited Supplies of Labour”, in: The Manchester School, 22, 2: 139–191.CrossRefGoogle Scholar
  37. Mukherji, A.; Mukherji, A., 2015: “Bihar”, in: Panagariya, Arvind; Rao, Govinda M. (Eds.), The Making of Miracles in Indian States: Andhra Pradesh, Bihar, and Gujarat (Oxford: Oxford University Press): 123–224.Google Scholar
  38. Munshi, K., 2004: “Social Learning in a Heterogenous Population: Technology Diffusion in Indian Green Revolution”, in: Journal of Development Economics, 73, 1: 185–213.CrossRefGoogle Scholar
  39. NFHS-4, 2016: “National Family Health Survey 4, 2015–16” (New Delhi: Ministry of Health and Family Welfare, India); at: (13 April 2016).
  40. Nishimizu, M.; Page, J.M., 1982: “Total Factor Productivity Growth, Technical Progress and Technical Efficiency Change: Dimensions of Productivity Change in Yugoslavia, 1965–78”, in: Economic Journal, 92 (December): 920–936.Google Scholar
  41. Prasad, P.H., 1975: “Agrarian Unrest and Economic Change in Rural Bihar. The Three Case Studies”, in: Economic and Political Weekly, 10, 24 (14 June): 933–937.Google Scholar
  42. Rada, N., 2013: “Agricultural Growth in India: Examining the Post-Green Revolution Transition”, in: 2013 Agricultural and Applied Economics Association and Canadian Agricultural Economics Society Joint Annual Meeting, Washington, DC, 4–6 August.Google Scholar
  43. Ranis, G.; Fei, J.C.H., 1961: “A Theory of Economic Development”, in: American Economic Review, 51, 4: 533–565.Google Scholar
  44. Rostow, W.W., 1956: “The Take-off into Self-Sustaining Growth”, in: Economic Journal, 66: 25–48.Google Scholar
  45. Scoones, I., 2009: “Livelihoods Perspectives and Rural Development”, in: Journal of Peasant Studies, 36, 1: 171–196.CrossRefGoogle Scholar
  46. Shah, M., 2016: “Eliminating Poverty in Bihar: Paradoxes, Bottlenecks and Solutions”, in: Economic and Political Weekly, LI, 6 (6 February): 56–65.Google Scholar
  47. Shephard, R.W., 1970: Theory of Cost and Production Functions (Princeton: Princeton University Press).Google Scholar
  48. Sullivan, C.; Meigh, J.R.; Fediw, T.S., 2002: Derivation and Testing of the Water Poverty Index Phase 1. Final Report (London: Department for International Development).Google Scholar
  49. Thirtle, C.; Lin, L.; Piesse, J., 2003: “The Impact of Research-Led Agricultural Productivity Growth on Poverty Reduction in Africa, Asia and Latin America”, in: World Development, 31, 12: 1,959–1,975.CrossRefGoogle Scholar
  50. Timmer, C.P., 1988: The Agricultural Transformation, in: Chenery, H.; Srinivasan, T.N. (Eds.), Handbook of Development Economics, Vol. 1. (Amsterdam: North-Holland): 275–331.Google Scholar
  51. Timmer, C.P., 2007: “Agricultural Growth”, in: Clark, D.A. (Ed.), The Elgar Companion to Development Studies (Cheltenham, UK: Edward Elgar).Google Scholar
  52. UNDP, 2007: Human Development Report (New York: UNDP).Google Scholar
  53. Wetland Atlas, 2010: National Wetland Atlas (cty, Bihar: Ministry of Environment and Forests, Government of India; Ahmedabad: Space Applications Centre, Indian Space Research Organisation); at: (15 January 2016).
  54. World Bank, 2006: Bihar Agriculture: Building on Emerging Models of “Success” (Washington, D.C.: Agriculture and Rural Development Sector Unit, South Asia Region Discussion Chapter Series Report No. 4).Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Development Management Institute (DMI)PatnaIndia

Personalised recommendations