Total factor productivity growth in marine fi sheries of Kerala

Abstract

Total factor productivity (TFP), which is a measure of the increase in total output not accounted by increase in total inputs is an indicator of the performance of any production system and sustainability of the growth process. The total factor productivity growth of marine fi sheries in Kerala was estimated using Divisia-Tornqvist index. The total marine fi sh production in the state increased from 3.25 lakh t in 1985 to 6.08 lakh t in 2010. The total factor productivity showed a negative growth of -3.69% indicating economic unsustainability of production system in the short run. The study concluded that there exists excess fi shing capacity above the economically optimal levels resulting in wastage of money, manpower and fuel in the fi shing industry. This necessitates the need for fi shery management measures and optimal use of resources in the sector.