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Abstract
This paper explores the question of convergence in total factor productivity (TFP) in agriculture across fourteen major
agricultural states oflndia. Using a Tornqvist-Theil index for TFP growth for the period 1973-1993, we find no evidence to
support convergence to a single TFP level (a -convergence). After grouping the various states on the basis of their productivity
performance, we find that the high-performing states show a gradual movement towards the trend, whereas the low-performing
states generally show more volatility. Testing for long-run convergence in levels of agricultural productivity, we find evidence
of conditional beta-convergence after controlling for state-specific factors and idiosyncratic year-specific volatility. The results
are robust to alternative specifications of tests of unit root in panel data developed recently.
© 2003 Elsevier B.V. All rights reserved.