Explaining Inter-Provincial Inequality in Productivity Growth in Crop Production in Pakistan

Abstract

Data on crop production are assembled for four provinces - Punjab, Sindh, North-West Frontier Province and Balochistan - for the period from 1980/81 to 2005/06 to examine inter-provincial differences in productivity growth rates. Propositions are put forward and examined to explain the superior productivity performance of Punjabi crop producers over those in Sindh and North-West Frontier Province, and the unusual productivity trends in Balochistan. The major factors relate to economic infrastructure and human capital. The impact of agricultural research is difficult to discern, and further work is required to assess the lagged effects of research expenditures on TFP growth.