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Railroads, Prices, and Peasant Rationality: India 1860–1900

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  • McAlpin, Michelle Burge

Abstract

In the literature on India's economic history, there has been a long debate on the influence of railroad development on the welfare of Indian farmers. Some economists and historians have argued that rail development increased welfare by providing new markets for agricultural products and permitting rising rural incomes. Others have argued that railroads had detrimental effects on welfare because, by encouraging cultivation of non-food crops (like cotton) and export crops (like wheat), they reduced the domestic food supply. Those who have stressed the adverse effects of railroads have seen these effects as a consequence of imperialist economic relations between Britain and India. In this view, the combination of British land revenue policy and rail construction transformed the rural economy. The need to pay the land revenue in cash forced fanners to grow some crop for sale; the railroads permitted non-local (or even non-Indian) demand to influence the prices at which different crops could be sold.

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  • McAlpin, Michelle Burge, 1974. "Railroads, Prices, and Peasant Rationality: India 1860–1900," The Journal of Economic History, Cambridge University Press, vol. 34(3), pages 662-684, September.
  • Handle: RePEc:cup:jechis:v:34:y:1974:i:03:p:662-684_07
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    Cited by:

    1. Fenske, James & Kala, Namrata, 2021. "Linguistic Distance and Market Integration in India," The Journal of Economic History, Cambridge University Press, vol. 81(1), pages 1-39, March.
    2. Arora, Saurabh & Sanditov, Bulat, 2009. "Caste as Community? Networks of social affinity in a South Indian village," MERIT Working Papers 2009-037, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Fenske, James & Kala, Namrata & Wei, Jinlin, 2023. "Railways and cities in India," Journal of Development Economics, Elsevier, vol. 161(C).

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