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Water Constraints to Agricultural Productivity in Bhutan

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Listed:
  • Dizon,Felipe Jr Fadullon
  • Imtiaz,Muhammad Saad
  • Yu,Jisang

Abstract

This paper uses two years of agriculture census data to build a panel dataset thatconsists of all the small towns in Bhutan. This dataset is used to estimate the impact of irrigation gaps and droughton the yields of paddy, maize, and other crops. The paper compares the estimated impacts from a panel fixed effectsmodel and a spatial first differences model. The findings show that irrigation gaps reduce paddy yields and droughtsreduce maize yields. Estimates from the spatial first differences model are found to be consistent relative tothose from the panel fixed effects model. The paper further finds that water constraints reduce yields of vegetablecrops, and other constraints, such as labor shortages, wild animals, insects, and diseases, also reduce the yields ofcereal crops.

Suggested Citation

  • Dizon,Felipe Jr Fadullon & Imtiaz,Muhammad Saad & Yu,Jisang, 2023. "Water Constraints to Agricultural Productivity in Bhutan," Policy Research Working Paper Series 10410, The World Bank.
  • Handle: RePEc:wbk:wbrwps:10410
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    References listed on IDEAS

    as
    1. Hannah Druckenmiller & Solomon Hsiang, 2018. "Accounting for Unobservable Heterogeneity in Cross Section Using Spatial First Differences," NBER Working Papers 25177, National Bureau of Economic Research, Inc.
    2. Dillon, Andrew, 2011. "The Effect of Irrigation on Poverty Reduction, Asset Accumulation, and Informal Insurance: Evidence from Northern Mali," World Development, Elsevier, vol. 39(12), pages 2165-2175.
    3. Sheetal Sekhri, 2014. "Wells, Water, and Welfare: The Impact of Access to Groundwater on Rural Poverty and Conflict," American Economic Journal: Applied Economics, American Economic Association, vol. 6(3), pages 76-102, July.
    4. Maria Jones & Florence Kondylis & John Loeser & Jeremy Magruder, 2022. "Factor Market Failures and the Adoption of Irrigation in Rwanda," American Economic Review, American Economic Association, vol. 112(7), pages 2316-2352, July.
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