Total factor productivity growth in marine fisheries of Kerala

Abstract

Total factor productivity (TFP), which is a measure of the increase in total output not accounted by increase in total inputs is an indicator of the performance of any production system and sustainability of the growth process. The total factor productivity growth of marine fisheries in Kerala was estimated using Divisia-Tornqvist index. The total marine fish production in the state increased from 3.25 lakh t in 1985 to 6.08 lakh t in 2010. The total factor productivity showed a negative growth of -3.69% indicating economic unsustainability of production system in the short run. The study concluded that there exists excess fishing capacity above the economically optimal levels resulting in wastage of money, manpower and fuel in the fishing industry. This necessitates the need for fishery management measures and optimal use of resources in the sector.