COMPETITIVENESS OF SOUTH ASIAN AGRICULTURE: A CRITICAL ASSESSMENT

Agricultural sector has historically been the backbone of South Asian economy, providing employment for more than half of sub-continent's work force. Although its share has progressively declined due to growing industrial and service sectors, it remains pivotal for almost three quarters of population living in rural areas. Agricultural productivity, as the ratio of agricultural output to agricultural input, is an important driver of growth, income, and human welfare in rural areas, and a major determinant of competitiveness. The aim of the paper is to understand the factors affecting agricultural productivity, as their interaction is key to improving competitiveness of South Asian economies. Indicators such as total agricultural production, arable land, rural population growth, fertilizer and pesticide application, and use of agricultural equipment and credit, were assessed using simple linear regression and modified total factor productivity analyses. While regression analysis highlighted arable land and fertilizer application as the best predictors of agricultural production, the modified total factor productivity analysis pointed out to relatively higher competitiveness of agricultural sectors of India and Bangladesh, and lower competitiveness of agricultural sector of Pakistan.