TECHNOLOGICAL PROGRESS IN AGRICULTURAL SECTOR OF PAKISTAN

Technological progress has played an important role to identify the demand of agro food in different decades. Total factor productivity index is used as proxy for the technological progress. The data consisted of output and input variables for the technological progress has been taken from the year of 1961-2013from different sources. The tremendous growth in the TFP has been observed during the decade of 60’s and lowest rates during the decade of 70s and in 2000. The results realized those factors which affected the productivity in different decades. Increase in inputs is not only the cause of favourable production, but the main thing is to efficiently utilize those resources. TFP index showed that in 60’s when government implement strategies effectively it increased the TFP rate. The results significantly proved that technological progress in different decades has highly affected the growth rates in agricultural sector.Keywords: Tornqvist-theil (T-T) index, technological progress, output variables and input variables.