Do Agricultural Marketing Laws Matter for Rural Growth? Evidence from the Indian States

Purnima Purohit, Katsushi Imai and Kunal Sen
Additional contact information
Purnima Purohit: The Adam Smith Business School, University of Glasgow, UK

No DP2017-17, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This article examines effects of the regulatory framework of post-harvest agricultural markets on agricultural growth across Indian states over the period 1970-2008. We propose a new measure that captures various legislative dimensions of a key ‘Act’ - the Agricultural Produce Markets Commission (APMC) Act and Rules - governing the agricultural markets, evolved from the dismal colonial history of India, and use this measure to estimate growth models using panel methods. We have applied Fixed-Effects, Feasible Generalized Least Squares, and Fixed-Effects Instrumental Variable models to the panel data to address the endogeneity associated with the regulatory framework. Our results show that the Act significantly promotes not only agricultural growth but the use and the adoption of agricultural technology. Evidence presented suggests that a policy to remove market regulation rather than advancing effective ones would fail consequentially to draw investments and improve agriculture growth.

Keywords: Law; Regulation; Agricultural markets; Colonial institution; Technology; Economic growth; Panel data; Indian states (search for similar items in EconPapers)
JEL-codes: C23 D02 K23 Q13 Q18 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2017-06
New Economics Papers: this item is included in nep-agr and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2017-17.pdf First version, 2017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:dp2017-17

Access Statistics for this paper

More papers in Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN. Contact information at EDIRC.
Bibliographic data for series maintained by Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University ().