iz

The present study has conducted to estimate the total factor productivity (TFP) growth of major grain crops in Pakistan for the period of 1972-2013 by using Tornqvist-Theil index methodology. Time series data of outputs and inputs was collected from different official published sources for the period of 1972-2013. The output index consist of wheat, rice and maize produces while, input index was constructed by using most of the conventional inputs. The results showed that TFP growth rate of major grain crops on an average was 1.90 percent per year during the study period (1972-2013). This study also estimated TFP growth during different time horizons. The results showed that TFP (4.65 percent) and output (6.69 percent) growth rate was highest during the decade of 90s and lowest during the last decade of the study period (-1.21 percent and 1.01 percent, respectively). The registered TFP growth rate was 2.60 percent and 1.56 percent during the decade of 70s and 80s, respectively. This study observed that weather conditions, different institutional and macro level factor are the major factor that affect the rate of TFP growth during the different study periods. It is recommended that in order to increase TFP growth rate huge public investments required in the area of extension, market, infrastructure and research. Keywords: TFP Growth, Tornqvist-Theil Index, Grain Crops, Output Index, Institutional.