Technology Gap and Productivity Difference in Indian Agriculture : A Meta Frontier Analysis

The efficiency differentials in agriculture among different states in India was calculated by utilizing the concept of group and meta frontier production function techniques. The productivity potential of various states was calculated by utilizing the concept of Technology Gap Ratio (TGR). Empirical results were derived from a district-level input-output data set comprising of 35 major crops of 15 major Indian states covering a period of 50 years. The results showed a large technology gap ratio between the sample states of the country, ranging between 0.403 and 0.838. The study supported the view that the technology gap plays an important part in explaining the ability of agricultural sectors in one state to compete with agricultural sectors in others states in India. For calculating the efficiency results, the data envelopment analysis (DEA) was applied for the input-output data set.