Factors influencing agricultural growth in Bangladesh

Abstract

This study is aimed at identifying and evaluating the factors and government policy reforms which influence agricultural growth in Bangladesh. Based on the secondary data of 25 years, the study used kinked exponential growth model to estimate the growth rates of different crops for the 1980-89 and 1990-2004 sub-periods. The study revealed that total area, area under MV crop, draft animal, fertiliser, human capital, proportion of irrigated area to gross cropped area, and irrigated area were found to have significant effects on the increase in output at the aggregate level. A growth decomposition analysis confirmed that more than two-thirds of the growth in output was attributable to the conversion of area from local to modern varieties. Both output and output growth increased significantly in the sub-period of 1990-2004 compared to the 1980-89 sub-period. The study also confirmed that a positive structural change took place in farming practices in the 1990-2004 sub-period. The government policy reforms on farm efficiency and productivity in the 1990s might have positively contributed to this structural breakthrough. Increased research efforts to develop varieties with higher yield potentials and research on the control of resources and environment degradation could be a good policy option to promote and sustain growth in food output for some years to come.

This study is aimed at identifying and evaluating the factors and government policy reforms which influence agricultural growth in Bangladesh. Based on the secondary data of 25 years, the study used kinked exponential growth model to estimate the growth rates of different crops for the 1980-89 and 1990-2004 sub-periods. The study revealed that total area, area under MV crop, draft animal, fertiliser, human capital, proportion of irrigated area to gross cropped area, and irrigated area were found to have significant effects on the increase in output at the aggregate level. A growth decomposition analysis confirmed that more than two-thirds of the growth in output was attributable to the conversion of area from local to modern varieties. Both output and output growth increased significantly in the sub-period of 1990-2004 compared to the 1980-89 sub-period. The study also confirmed that a positive structural change took place in farming practices in the 1990-2004 sub-period. The government policy reforms on farm efficiency and productivity in the 1990s might have positively contributed to this structural breakthrough. Increased research efforts to develop varieties with higher yield potentials and research on the control of resources and environment degradation could be a good policy option to promote and sustain growth in food output for some years to come.