Impact of Total Factor Productivity and Return to Investment on Research for Sustainable Agriculture Growth: A Case Study of South Gujarat Region

Abstract

TFP growth in South Gujarat by crops has developed a strong perception that technological gains occurred in paddy, wheat, tur, cotton, sugarcane, and banana.Cotton has enjoyed the highest benefit of technological innovations during the past twenty-four years with its TFP growth more than 3per cent. The impact of research on different crops has indicated high payoffs to research in all crops. The results revealed that investment of rupee one in research stock has generated, on an average, an additional income of Rs 7, indicating high rates of returns to public investments. The marginal internal rates of return to agricultural research are estimated to be between 35 and 54 per cent showing that investment in agricultural research during the past 24 years has resulted in attractive returns. The study has clearly indicated that investment in agriculture is a highly paying proposition and presents strong case for allocation of additional resources to research for the development of agriculture in South Gujarat.