The Case of India 



109 



Here 

 TFPu 

 DIADP. 

 DREGi 

 DDR^f 



is a district total factor productivity index (1960-61 

 = 100). 



is a dummy variable for lADP districts (equaled 1 

 for I ADP, for non-I ADP districts), 

 is a set of 13 dummy variables for agro-climate 

 regions. 



is a dummy variable for drought years, which 

 assumes a value of 1 when output is 10% below 

 trend. 



is a measure of technological discovery activity 

 directed toward the district. It is the cumulated ex- 

 penditures on research in the state in which the 

 district is located from 1948 to /, deflated by the 

 1960 value of all inputs devoted to agricultural pro- 

 duction in the state. A lag was introduced into the 

 variable by the following cumulation process: 



^^it - ^ 



t-5 



E 



1948 



^r + 



m^_, + 



.6R^_,+ AR^_, 



+ .2R 



t-i 



where R^ is the research expenditure in time t in 

 the state, and D is the deflator used.' ' 

 RR is a measure of research outside the state, but with- 



it 



in the same geoclimate region (constructed in the 

 same way slsSR^^). 

 (SR X RR). As an interaction term, the multiple of state-based 

 research and geoclimate regional research, included 

 to take account of the interaction between SR.^ and 

 RR .since one is to some extent a substitute for the 

 other. This term also introduces nonlinearity.'^ 

 TFP 5661. is the rate of change in total factor productivity in 

 the district from 1956 to 1961. It is a proxy measure 

 of economic slack existing in 1961 — the start of the 

 program. 



11. The form of ihc lag slruclurc is derived from Evcnson (1971). 



12. See Evenson (1973) lor I'urlher discussion oriechnologicai borrowing within 

 and across regions. 



