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Poverty, Agricultural Production and Prices in Rural India--A Reformulation

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  • Gaiha, Raghav

Abstract

The empirical analysis at the all-India level demonstrates that, while the level of agricultural production and rural poverty were inversely related, unanticipated consumer price increases aggravated rural poverty. Whether the advent of the new agricultural technology in the late 1960s altered the relationships in question is also considered. During the new technology phase, the coefficient of agricultural production ceased to be significant, while that of unanticipated price changes continued to be significant. Rationalization of the absence of a significant (inverse) relationship between rural poverty and agricultural production at the state-level, in terms of distress migration between neighboring states, is questioned and an alternative explanation is provided. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Gaiha, Raghav, 1989. "Poverty, Agricultural Production and Prices in Rural India--A Reformulation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 13(2), pages 333-352, June.
    • Handle: RePEc:oup:cambje:v:13:y:1989:i:2:p:333-52
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    Citations

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    Cited by:

    1. Katsushi Imai & Raghav Gaiha & University of Delhi, 2003. "Millennium Development Goals, Agricultural Growth and Openness," Economics Series Working Papers 161, University of Oxford, Department of Economics.
    2. Himanshu, Himanshu, 2008. "Growth, employment and poverty reduction: post-reform Indian experience," LSE Research Online Documents on Economics 38342, London School of Economics and Political Science, LSE Library.
    3. Munir Ahmad, 2003. "Agricultural Productivity, Efficiency, and Rural Poverty in Irrigated Pakistan: A Stochastic Production FrontiermAnalysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(3), pages 219-248.
    4. repec:ilo:ilowps:286955 is not listed on IDEAS
    5. Raghav Gaiha, 1995. "Does Agricultural Growth Matter in Poverty Alleviation?," Development and Change, International Institute of Social Studies, vol. 26(2), pages 285-304, April.
    6. Singh, A. & Tabatabai H., 1992. "World economic crisis and third world agriculture: the changing role of agriculture in economic development," ILO Working Papers 992869553402676, International Labour Organization.
    7. McAleer, Michael, 1995. "The significance of testing empirical non-nested models," Journal of Econometrics, Elsevier, vol. 67(1), pages 149-171, May.
    8. Fan, Shenngen & Hazell, Peter & Haque, T., 2000. "Targeting public investments by agro-ecological zone to achieve growth and poverty alleviation goals in rural India," Food Policy, Elsevier, vol. 25(4), pages 411-428, August.
    9. Surajit Deb, 2002. "The Debate on Agriculture-Industry Terms of Trade in India," Working papers 109, Centre for Development Economics, Delhi School of Economics.
    10. Amita Shah, 2010. "Natural Resources and Chronic Poverty in India: A Review of Issues and Evidence," Working Papers id:2773, eSocialSciences.
    11. Madhusudan Ghosh, 2009. "Dynamics of Agricultural Development and Rural Poverty in Indian States," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(3), pages 265-295, July.
    12. K.P. Kannan, 1995. "Public Intervention and Poverty Alleviation: A Study of the Declining Incidence of Rural Poverty in Kerala, India," Development and Change, International Institute of Social Studies, vol. 26(4), pages 701-728, October.
    13. Raghav Gaiha, 1991. "Poverty Alleviation Programmes In Rural India: An Assessment," Development and Change, International Institute of Social Studies, vol. 22(1), pages 117-154, January.
    14. Fan, Shenggen & Hazell, P. B. R., 1997. "Should India invest more in less-favored areas?:," EPTD discussion papers 25, International Food Policy Research Institute (IFPRI).
    15. Fan, Shenggen & Hazell, P. B. R., 1999. "Are returns to public investment lower in less-favored rural areas?: an empirical analysis of India," EPTD discussion papers 43, International Food Policy Research Institute (IFPRI).
    16. M. H. Suryanarayana, 2002. "Poverty in India: Misspecified Policies and Estimates," WIDER Working Paper Series DP2002-15, World Institute for Development Economic Research (UNU-WIDER).
    17. Ravallion, Martin, 2000. "Prices, wages and poverty in rural India: what lessons do the time series data hold for policy?," Food Policy, Elsevier, vol. 25(3), pages 351-364, June.

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