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

Raghav Gaiha

Cambridge Journal of Economics, 1989, vol. 13, issue 2, 333-52

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.

Date: 1989
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