REVIEW OF LITERATURE

A large number of studies have been carried out on the agriculture sector and measurement of its
productivity in India. All these studies can be categorized into two group agriculture sector and
other crops specific sector. These studies have proved that Total Factor Productivity growth of
agriculture has been vital contributing for acceleration of Indian national income growth.
Tanhampoar and Mahmoudi (2018) investigated the empirical model to evaluate the
productivity growth in agriculture sector. The result has been found that average factor
production growth rate is -0.72 percent and its share in value added is also negative -19.6 percent
while it has estimated to be 33.8 percent in fourth development plan. The value added growth in
agriculture sector has achieved by the effective capital role in agriculture low. Labour
productivity growth does not have positive effect on the value added growth.
Trpeski and Cvetanoska (2018) analyzed the changes in labour productivity and its impact on
agriculture sector in Macedonia from 2006 -2017. Labour productivity is considered an
important determinant which further helps to create essential condition to grow all economy. So,
it is important to increase the agriculture production level in order to grow labour productivity.
The study also analyzed the relationship between labour productivity and GDP and employment
in agriculture sector. To analyze the data information the study used descriptive, comparative
and regression analysis.
The result showed that there are high correlation between GDP in agricultural and agriculture
labour productivity that means changes GDP in agriculture have a great impact on labour
productivity rather than to impact on changes employees in agriculture sector in Madcedoian
economy.
Alexanderi (2017) explained the labour productivity situation in Rumanian agriculture farms
across regions. The results have been indicated that there are economic growth trends in west
region and less obvious in North east region.
The study explained important evaluations about farm income, subsidies, farm capital and their
effect on labour productivity. Thereafter, the results are compared to similar indicators of
European countries.
Onogwu et al. (2017) examined the factors which are affected small holder farmer agriculture
productivity in Taraba state agriculture Zone 2. The study has used descriptive and binary
logistic model to test the determining factors. Primary data are collected through questionnaires
and personal interview from 150 small farmers. The factors which are included namely farm
size, credit loan, experience, gender and age. The results have showed the variables found to be
highly significant and which influenced farmers productivity include access to farm size and
formal credit at 5% and membership of farm at 1% level. The other variables that are not high
significant however some influence on productivity include gender, age and experience.
The study finally resulted that the productivity in Nigeria perceived declining. And to
fulfill the gap between demand and supply of food, the country has to depend on food import. It
is suggested that to ensure food security and sustain farm scale could be attained through access
to more credit, increase in membership of farm based organization and farm size that further help
to enhance its productivity.
Pelzom and Kotel (2017) examined the factors affecting the participation of youth generation in
agriculture sector and its potential to create employment in Bhutan. As other developing country,
agriculture forms the backbone of Bhutan economy. It provides employment and other live hood
needs to the population. However, it is noted that the share of agriculture to GDP has been
decaling over the time period. There is some reason behind it, which affected the agriculture
productivity. They found that the main response are the decline workers in agriculture sector,
less mechanized farming and more migration of young people to urban area.
As a result the labour force is decline continues in rural area. The researchers revealed
that agriculture can be potential to create employment. But, there are some components that
make causing young people not to take interest in agriculture like loss of crop, lack of resources,
pressure of family members and less access to financial and technical facility. It is suggested that
with the technical and financial help beneficiary farming can be made more attractive to young
generation toward agriculture sector.
Sagar (2017) focused on the various problems facing by Indian agriculture labor that is most
neglect class. The study has discussed about the problems of agriculture workers and government
policy to measure these problems and finally discuss possible suggestion for improving the poor
condition of agriculture labour.
Amire and Temitope (2016) carried out the empirical investigation between the relationship
agricultural productivity and economy growth I Nigeria. The paper employed person correlation
coefficient and OLS method to test the effect of agricultural productivity and economy growth.
Empirical results showed that there is a long run relation between both. The GDP share of
agricultural sector bank credit access, expenditure on this sector is all variables which have
expected positive sign in Nigeria economy. It is suggested that the policy maker should be
attention on agriculture productivity in order to enhance the capacity of agriculture production.
Novotna and Tomas (2016) focused on the analysis the significance of size of farm in the
evaluation the labour productivity in agriculture sector and impact of a different approach of
labour productivity indicator. The study found that farm’s size has significant impact on the
labour productivity level 1 (that defines as ratio of accounting added value and cost of labour.
The analysis also revealed that an adjustment of farm approach of labour productivity when paid
operation subsidy is added, it changes the conclusion. The study has been proved that subsidy
significantly affected the labour productivity in farm. One side, there is decline of differences
between the value of particular size of farm and other side; there is no significant decline its
variability.
Nyamekye et al. (2016) contributed to the literature on agricultural productivity by attempting to
test the effect of human capital on maize productivity in Ghana. They have explained that
agriculture plays a vital role in African countries economy and its productivity growth deals with
economy growth and poverty reduction in the region. Low income level household are
considered depend on maize for food security, they have felt insecure if they have no maize
stock. The study have used quartile and OLS regression model to test the effect of human capital
on maize productivity in Ghana. The result showed that human capital has not significant effect
on maize’s yields and its effete on productivity varies across quartiles.
Ranga and Muruganandhan (2016) reviewed the findings of various research works on the
impact of farm mechanization on production, productivity, employment and gross income in
agriculture sector. They found that, different studies concluded that the farm mechanization
increased more efficient utilization of inputs which lead to increase average cropping intensity
and increase labour productivity. They found tractorisation displaced animal power upto about
60 percent, but its effect on labour was much less. The farm mechanization increased.
Desmukh and Nitin (2015) analyzed the potential power of agriculture sector to provide
employment in Indian growing population. They focused on population that comprised in
agriculture. The working age population has increased from 58 percent in 2001 to 64 percent in
2011. Thus, the contribution in employment and economy growth of agriculture sector is largest.
But another side, its share in national GDP has sharply declined from 51.9 percent to 13.7
percent in 2011.
They observed 52 percent population employed in agriculture with 13.7 percent share in
GDP. The main cause behind it, a large proportion of working farmers are poor and land less and
their wage rate and productivity also very low. However the importance of agriculture sector is
not limited its decreasing share in GDP, but it need increased in terms of it trade relationship
with non agriculture sector.
Devi (2015) examined the potential of agriculture sector for long run economic growth. She
provided empirical evidence on share of agriculture sector to create employment economic
growth and economic transformation in India which is a developing country. She concentrated
on the significant role of agriculture in terms of its contribution in GDP, employment and as
supplier of inputs to another sector in Indian economy. She is concluded a vital role of
agriculture is not only reasserted but also the importance of the bridge between agriculture and
other sector of the economy.
Silverira and Fabris (2015) analyzed the behavior’s evaluation in the agriculture and live stock
sector in Brazilian economy by used input –output matrix for 1995, 2000, 2005and 2009. These
matrices are used to compute forward and backward linkages. The result of the study proved that
agriculture plays significant role in Brazilian economy in term of transaction relationship with
non agriculture sector as a form of buyer and supplier of inputs to other sector.
As a form of employment generator, it showed decline in all the periods while as a form
of production and income creator, it resulted growing in all the periods. It is suggested that to
achieve long run specialization in agriculture and livestock, it is needed to increase the use of
capital and require fewer workforce o work in this sector. Thus, it provides labors for
development and diversification of other sector.
Stanojevie (2015) focused on the modern farming way to organized agriculture production. It
helps to increased knowledge level as well as develops entrepreneurial skill and ability of
population. The present educated labour force will easily adopt the modern technique of
agriculture production. It increases the labour productivity of poor agriculture economies which
further increases income, demand and supply of goods and services. Thus, they observed the
impact of labour productivity in agriculture on share of GDP.
Swamikannan and Jeyalakshmi (2015) examined the women perception the seasonal and
region wise in agriculture sector. Many women in developing countries are engaged in
agriculture activities. They play crucial participation in agriculture development. They found that
the extent of women’s participation no doubt varies highly from one region to another region in
agriculture. Mostly rural women in Indian economy are included in agriculture. It is absorbed
4/5th of total activity women workforce in the country. There are 48 percent women among
India’s self employed farmers. The dependence of women’s on agriculture sector as an income
source has also increased over time in various regions.
Raju et al. (2015) analyzed the pattern and trend in labour absorption in agriculture across major
crops and states from 1970 to 2010. The entire time period divided into two periods the first
period as up to mid 90’s and second past mid 90’s period. The results showed that there is high
variation in labour absorption among different crops namely wheat, rice, cotton and sugarcane at
national level. Labour absorption has declined in the case of wheat production during all time
period and increased in case of cotton. Paddy and sugarcane has depicted varying trends
increasing in up to mid 90’s and decreasing thereafter. The main reason decline labour
absorption is noticed the technological changes in agriculture sector.
Venkatesh and Nithyashee (2015) analyzed the role of Indian agriculture in terms of its share
in output, employment and growth. This paper discussed some issues as agriculture share in
income and employment and determinants of rural non- farm employment and finally sectoral
variation among agriculture employment across different major state. The results have found the
percent contribution of agriculture in employment generation has decline and in GDP context its
share, India follows same pattern of developed countries is observed continuously decreased.
It has noted that the male worker dependency on agriculture has declined but the participation of
female workers increased which is an indicator of feminization of agriculture.
Zenka et al. (2015) evaluated the importance of geographical factors that affected the
differences in agricultural labour productivity at micro level regions in the Czech Republic. They
included labour productivity of agricultural only business companies and corporative. They
tested the impact of natural condition, population density, farm size and localization on labour
productivity of agriculture. They found that there is positive relationship between nominal price
of agricultural land and labour productivity. There is no systematic relationship between farm
size and labour productivity. They did not find any relationship between localization and
productivity. The population density is affected productivity positive significantly.
Urgessa (2015) investigated the determinants of agricultural productivity and rural household
income in Ethiopio. To examine the relationship between income and productivity panel data
regression model used namely pooled OLS, Fixed and Random effect model and using socio-
economic survey of 2011-12 to 2013-14.
She has found that land labor ratio, using fertilizer and household size have been most
positively significant variables which affected agricultural productivity. However, drought and
number of dependency ratio have been affected negatively significant the rural farmer’ income.
Sex was the main factor among the socio- economic factors for changing in rural farmer’s
income. She concluded that labour productivity is the most potent and enhancement for
agricultural productivity in rural household’s income.
Chepto (2014) identified the factors that have attributed to decline in agricultural production in
Uasin Gisnu country, Kenya. Descriptive statistic and chi square test is used to analysis the
collected data. The study found that the main factors that adversely affected production are
increasing cost of inputs; decrease in soil fertility used and decline size of land in these areas.
The study concluded that increasing prices of agriculture over time has mainly responsible for
limited access of the farmers to use fertilizer and other soil nutrients thus causing decreased soil
fertility. It is recommended that to increase agriculture production government should be given
subsidies on the cost of farm inputs that further motive to farmers.
Shittu and Adine (2014) examined the impact of trade, public / private expenditure on
agriculture productivity growth in SSA countries from 1990 to 2010. The study is based on the
neo classical and endogenous growth model. The study is given support to capital intensive
technique and sustained increase expenditure which further enhance to the production access to
new modern technology and infrastructure. It is helped to improve labour productivity. The study
also identified that there is positive impact of economic integration (public/ private expenditure)
on APL and TFP In SSA. It is recommended that better supported subsidies to agriculture
production can be enhanced the ongoing recovery from past neglects.
Valerio (2014) analyzed how agricultural productivity of major crops namely rice, corn and
coconut in the CALABARZON region has affected by using with extent of inputs. To estimate
the data he has used Cobb-Douglas production function. He found that land, labour and capital
are the most important factor for TFP in the region. In coconut production, there is not capital or
labour intensive technique, being a lazy labour crop. While in increasing the Rice productivity,
it has found that capital is most important factor rather than labour. And in agriculture sector
there has large number of labor surplus and highly using of capital.TFP is seem as the real driver
of production. He also suggested that improved technology, sufficient human resources and other
non inputs have also worked as contributors in economy growth.
Boghean and state (2013) analyzed underlying factors as GAV and employed population of
labour productivity in agriculture, forestry and fishing. The study results have been recorded
increase gross value indicators if the number of the population employed in this sector has
remained same. T he weight of the increase this factor in the increase of average labour
productivity in this sector. These factors have had a positive impact on average labour
productivity.
Doward (2013) examined the impact of the links between agricultural productivity and food
price changes. He focused on examine the role of falling food prices relative income in economic
growth in agriculture. The need of low price to revive economic development highlights the
significant of increasing the productivity of agriculture labour in economy. The growing labour
productivity is considerable a need to increase the share of agriculture in GDP in country
economy. To raise these is no need for government policy, good environment, material inputs
but also falling food price, it is demand in recent time that further to simulate development of
economy direct and indirectly.
Kumar and Nain (2013) analyzed the strengths, weakness, opportunities and threats to Indian
agriculture. They found that the largest cultivable land with highly record production of food
grains showed the strength of Indian agriculture. The main weakness of agriculture lies in large
amount of harvest losses, low yields and less contribution in national GDP. They focused that the
opportunities are exited in Indian agriculture but the question arise here that how these
opportunities can be enhance the income of farmers which further helpful to increase national
income.
Salami and Arawomo (2013) analyzed the factors that responsible for the level of agricultural
credit in Africa. Agriculture is considered higher contributor to African economy. There are
some limitations in African agriculture sector which create problem to develop it as less access
of land and costly modern technology and low level of credit to agriculture sector. To estimate
the data information fixed and random effect model is used and compared the result with the
pooled OLS regression. Panel data is used from 1990 to 2011.
The study finding showed the higher saving can be created higher credit for agriculture
sector. But, it is observed that the saving capacity in Africa remains low. As the result the impact
of saving on productivity is still passive. The governance variables as corruption, law,
effectiveness of government have also negatively affected labour productivity.
Todkari (2012) attempted to examine the impact of irrigation on agricultural productivity in
Solapur district where rainfall is uncertain and inadequate. So, irrigation is necessary for
successful agricultural production. The study is based on secondary data and Kendal’s ranking
coefficient method to know the agricultural productivity. He observed that there is high
correlation between irrigation intensity and agricultural productivity in five tehsils in this region
namely Pandharpur, Malshiras, Karmala , Barshi and Madha. And he found that if irrigation
increased as a result productivity also increased.
But, the negative correlation is observed in Mangalweda tehsil while in this area
irrigation is high but low productivity is due to traditional way of farming, low fertility and lazy
farmers. He suggested that it is essential to improve agricultural productivity in this region,
irrigation can be increased by many programs like designed scientifically rain harvesting.
Doss (2011) gave an empirical evidence to study on women role in agriculture. The participation
of women in agriculture sector is clearly significant women comprise more than half of
agricultural worker in many African and Asian countries but found out their contribution is much
less in some reason .Although, their significant contribution in agriculture sector yet.
It is impossible to estimate empirically their share in production separately because , usually all
family members are involved in agriculture, and inputs that cannot be reading assigned by
women .They concluded that for good women aware agriculture policy making, It is necessary
accurate and specific important in which has improved the understanding of women’s
complexity role in agriculture activities.
Lgwe (2011) examined the determinants of agricultural production in Abia State in Nigeria. To
analyze the data OLS regression model has used. The result showed that the total land area and
annual rainfall have positive significant determined total crop production at 1 % level. Total
population and government expenditure were never significant.
So, he suggested that government would need to do more effort to ensure that insufficient
food which the continuously increasing population would depend on was addressed. Government
should be revised on their expenditure on agriculture in terms how the govt. fund is used to
ensure that it meaningful affected the rural economy.
Shittu and Ashoaw (2010) examined pattern and determinants of agriculture labor productivity
in West African region. The analyses revealed that agriculture productivity is positively affected
higher education, growing capital formation, more irrigation and good quality fertility. Among
above factors the most significant factor is higher education followed by capital formation.
Dharmasiri (2009) attempted to format a dissimilar model for computing agriculture
productivity. It is called Average Productivity Index which can recognize spatial distribution
pattern of productivity of a state or any county. There are two major components of API are
average yield and harvested area related to select crops. The important feature of API that it
deals always average and standard deviation. This method may .be utilized in recognize of
agricultural area and with its help policy makers will be able to make planning decision to grow
the productivity of agriculture.
Meijerink and Roza (2007) showed that agriculture is backbone in many developing countries
for GDP growth and development. In recent years, there have been various changes in
agriculture sector in developing country. However agriculture is fewer contributors in GDP as
compare to nonagricultural sector. The nonagricultural sector have higher productivity than
economies where agriculture dominator.
Kumar and Mittal (2006) examined sustainability issue of the Indian crop productivity from
1971 to 2000.A sustainable farming system is a system in which natural resources are managed
in this way that potential yield and the resources stock do not decrease over time period. To
compute the TFP indices for crops they have applied Divisia-Tornqvist index. The results have
shown that the obtained productivity growth during 1980’s has not been sustained during in the
1990’s.
So, it has created a serious challenge to the researchers to shift upward the production function
by improving technology during green revolution, the improvement of technology had a high pay
off in food production but after these years agriculture has been realizing diminishing return to
inputs.
Polyzos and Arabatzis (2006) examined labour productivity difference in the Greek’s
agriculture sector and the factors that affected the labour productivity. They also invested the
relation between determinants factor and labour productivity. The study has been resulted that
there are positive and significant variables are cultivated agriculture area, number of used
instruments and irrigated area while employment is positively insignificant related to labour
productivity.
Bhatia (2004) found that labour absorption in agriculture seemed to have either decreased or
remained same in the case of most crops and states. It has been observed that states Punjab,
Haryana and Rajasthan registered minimum labor absorption while orrisa and west Bengal
employed great number of labour. It has been noticed improvement in labour productivity even
as rate of spread of yield per unit land reduced.
Odhiambo and Nyangito (2004) explored the source and determinants of agricultural growth
and productivity in Kenya. The study established that land labour and capital are major factors in
kenya agriculture growth. Labour has been contributed 48% of total agriculture growth. The stud
has also explained other major determinants of agriculture total factor productivity Kenya trade
policy, government expenditure and climate.
Timmer (2002) focused on the analytical performance of agriculture in sharing to economic
growth and provides a framework for understanding its contribution. It also gave attention on the
empirical difficulties in constructing their quantitative volume and direction of impact. He
discussed the role of agriculture in poverty reduction and in the market environment feature that
will promote that growth.
Mittal and Kumar (2000) measured the quality of inputs and technology by used Total Factor
Productivity. The study found that farm modernization and literacy has positively related to crop
productivity. the Divisia-Törnqvist index is applied to compute the total output, input and input
price indices. Cross section time series data are used in the computing of TFP decomposition
model using three stage least squares (3SLS) estimation framework. The study observed that the
TFP index for wheat shared about 24 percent to the output growth. The most important
determinants of TFP growth are Research investment, quality of inputs and rural infrastructure.
There is a need to public expenditure to agricultural research, water irrigation availability,
electrification to areas where the yield levels are recorded still low level.Evenson and resegrant
(1999) analyzed TFP productivity growth in Indian agriculture sector through its trends and
sources. They have found that productivity has shared about 1.1% per annum after 1956.The
tradition inputs have contributed approximately 2.3% per annum in total crop production. While
modern inputs like HYN seed, fertilizer and irrigation are measure drivers to TFP growth in
Indian productivity such as enchaining investments, rural development like expenditure on
infrastructure have play vital role to grow in agricultural productivity.

The main reason deceleration of agriculture growth has been sharply fallen in total
investment in agriculture. They also have suggested that to accelerate the agriculture productivity
should be increased in ability of fund while will further accelerating the TFP growth and
improving sustainability of crop in Indian economy.

Wen (1993) examined the role of the successive rural institutions in China in terms of varies in
Total Factor Productivity for crop and non-crop production. The study has been estimated PFP
and Total Factor Productivity by applied TT index. The study concluded that Household
Responsibility System was more efficient in resource allocation than the commune system in
growing Total Factor Productivity. The commune system has succeeded in improving land
productivity but failure in labour productivity In more than 20 years.

Allen (1988) explained the growth of grain yields and decrease in employment in agriculture due
to increase in farm size. To measure the variation in the size of farm over time period 17 th and
18th centuries estate surveys and land tax assessments have applied. The estimation of crops
yields are simulates labour productivity in English agriculture. The implied growth in efficiency
is consistent with independent estimates of raise yield of crop .Thereafter, estimates of English
agriculture productivity is compared with French and Russian agriculture performance.
Bhalla and Roy (1988) explained the impact of land quality on agriculture productivity. They
confirmed the inverse relation between farm size and agriculture productivity due to the
difference in land fertility. They have used Malthusian approach to explain fertility differences in
land that occurs inverse relation between both. This approach has showed in more fertile area as
small size and as result it more productive.
Carter (1984) identified the inverse relationship between size of farm and agriculture
productivity. He explained the main reason of the inverse relation is based on the assumption that
farmer is risk averse so he tends to redistribution harvesting work or his time labour efforts
among alternative hired employment. Thus, small farmer always chooses less risk option and self
cultivation rather than hired labour.
Mazumdar (1961) proved negative relationship between farm size and agriculture productivity.
He explained the reason behind it that it is fact that family labour is used on small size farm and
for large size farm is usually used hired labour in harvesting purpose of crops. The motivation of
family labour has higher for more productivity rather than hired labor. He proved that within
increase use of farm size it productivity result decrease. He used data from 1955-56 from two
district of UP in India, and he found that returns have decreased to increase inputs of one acre of
land. Thus, increasing use of inputs results have showed outputs results have showed output per
unit of input decrease.