Crop diversity and economic growth in India: A ‘U-shape’ relationship

Anu Rammohan, Shalem Balla, Anjali Sharma, Srinivas Goli and Swamikannu Nedumaran

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: This study examines the dynamic relationship between transitions in cropping pattern and economic growth in India over the period 1966 to 2017, specifically focusing on the relationship between crop production diversity and economic growth. Using the state-level panel data, we present two-way line graphs and estimate Quadratic regression models. This enables us to explore the intricate relationship between GDP per capita and the Shannon Diversity Index. By employing piece-wise regression models, we aim to discern any statistically significant breakpoints or shifts in this relationship. Finally, we estimate Quantile regression and Regression Discontinuity Design (RDD) as robustness checks. Our empirical results show that crop production diversity decreased between 1966 and 1995 and then slightly increased, thereby resembling a 'U-shape relationship'. Using the year 1995 as a breakpoint, the piece-wise regression model shows a split relationship between the Shannon Crop Diversity Index and GDP per capita, with a negative relationship in the first period (1966-1995) and a positive relationship in the second (1996-2017).

Keywords: Agriculture; Crop Diversity; Economic growth; Gross Domestic Product; India (search for similar items in EconPapers)
JEL-codes: F63 O13 Q1 Q18 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:341615

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