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Rural Infrastructure, Land Productivity and Crop Diversification in Odisha, India: An Assessment

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  • Nayak, Chittaranjan

Abstract

Identifying the sources of agricultural growth in India has been an unsettled area of research. The debate mainly centres around the relative efficacy of price and non-price factors. The present study examines the impact of some non-price factors including rural infrastructure. Taking land productivity and crop diversification as the two principal indicators of agricultural growth, the study measures changes in these indicators vis-à-vis the stock of rural infrastructure in Odisha, an eastern Indian state. By using district-wise cross section data for the year 2011-12, indices for rural infrastructure are prepared with help of the Principal Components Analysis, and crop diversity indices are measured by the Theil Entropy formula. The study observes that rural infrastructure has significant positive impact on land productivity. However, along with high yielding variety paddy, infrastructure contributes to concentration rather than crop diversification. In addition, the study also observes persistence of regional divide in infrastructure, which may be considered as a major concern having wider implications.

Suggested Citation

  • Nayak, Chittaranjan, 2015. "Rural Infrastructure, Land Productivity and Crop Diversification in Odisha, India: An Assessment," MPRA Paper 87995, University Library of Munich, Germany, revised 19 Oct 2017.
    • Handle: RePEc:pra:mprapa:87995
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    References listed on IDEAS

    as
    1. Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2001. "How Agricultural Research Affects Urban Poverty In Developing Countries? The Case Of China," 2001 Annual meeting, August 5-8, Chicago, IL 20636, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Bob Baulch, 1997. "Transfer Costs, Spatial Arbitrage, and Testing for Food Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 477-487.
    3. Patra, Rabinarayan, 2014. "Agricultural Development In Odisha: Are The Disparities Growing?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(3), pages 1-16, July.
    4. Takashi Kurosaki, 2003. "Specialization and Diversification in Agricultural Transformation: The Case of West Punjab, 1903–92," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 372-386.
    5. Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993. "How infrastructure and financial institutions affect agricultural output and investment in India," Journal of Development Economics, Elsevier, vol. 41(2), pages 337-366, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Agricultural productivity; crop diversification; rural infrastructure; regional disparity; principal component analysis;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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