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Public investment in farm sector of Punjab: An impact analysis


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Indian Journal of Economics and Development
Year : 2012, Volume : 8, Issue : 1
First page : ( 25) Last page : ( 36)
Print ISSN : 2277-5412.

Public investment in farm sector of Punjab- An impact analysis

Kaur Amanpreet, Ph.D. Student, Sharma J.L., Professor of Economics (Retired), Chahal S.S., Senior Economist (Marketing)
Department of Economics and Sociology, Punjab Agricultural University, Ludhiana

The present study was conducted to assess the impact of public investment in agricultural research on productivity of crops and enterprises in Punjab. In order to achieve the stipulated objectives of the study the data on research expenditure and productivity of crops and enterprises were compiled from Center for Monitoring Indian Economy Reports, Statistical Abstract of Punjab, and from various departments of Punjab Agricultural University for the period 1985–86 to 2009–10. The tabular and functional analyses were used to analyse the data. Overview of growth analysis of research expenditure and productivity shows that for all the crops except oilseed, pulses and maize the research expenditure and productivity shows positive relationship. This calls for promotion in the investment to augment the production for realizing benefits of increased output. The impact of public sector investment on productivity of crops/enterprises was positive but with lapse of time. Lag effect of research investment on productivity implies reduction in food grain productivity. The study pointed out the need for sustained public investment as a means to raise the productivity of crops and allied enterprises such as mushroom farming, beekeeping, etc. The findings suggested that the government should increase the allocation of funds to farm sector research in order to improve research efficiency.

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