THE OVERAll RATE OF RETURN TO AGRICULTURAL RESEARCH AND EXTENSION INVESTMENTS IN PAKISTAN

The purpose of this paper is to identify and establish the contribution of the major sources of overall productivity growth to Pakistan’s agriculture. The paper concentrates on the role of research and extension and estimates a rate of return to agricultural research and extension expenditures within Pakistan. The analysis takes the form of estimating (regressing) a total factor productivity index on non· conventional inputs which include research and extension expenditures as arguments. It is estimated that the marginal rate of return to investment in research and extension in Pakistan is 65 per cent.