This paper applies the Färe-Primont index to calculate total factor productivity (TFP) indices
for agriculture in 17 regions of Bangladesh covering a 61 year period (1948-2008). It
decomposes the TFP index into six finer components (technical change, technical, scale and
mix efficiency changes, residual scale and residual mix efficiency changes). Results reveal that
TFP grew at an average rate of 0.57% p.a. led by the Chittagong, Rajshahi, Rangpur, Dinajpur
and Noakhali regions. TFP growth is largely powered by technological progress estimated at
0.74% p.a. Technical efficiency improvement is negligible (0.01% p.a.) due to stagnant
efficiency in most of the regions. Decline in scale efficiency is also negligible (0.01% p.a.) but
the decline in mix efficiency is high at 0.19% p.a. Decomposition of the components of TFP
changes into finer measures of efficiency corrects the existing literature’s blame of a decline
in technical efficiency as the main cause of poor TFP growth in Bangladesh. Among the
sources, farm size, R&D investment, extension expenditure, and crop specialization positively
influenced TFP growth whereas the literacy rate had a negative influence on growth. Policy
implications include encouraging investment in R&D and extension, land reform measures to
increase average farm size, promotion of Green Revolution technology, and crop
diversification.