Population pressure and livelihood dynamics: Panel evidence from Bangladesh

Solomon Lemma, Shahidur Rashid, Nigussie Tefera and Mohammad Yunus

No 1326, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: Since the publication of the World Development Report 2008, two related strands of research have emerged—one on the validity of smallholder-led development strategy and the other on agricultural intensification under population pressure. The former casts doubt about the role of agriculture in economic development in smallholders dominated countries and the later provides evidence that are contrary to earlier findings on induced innovation theory.; Using a unique panel dataset, we examine whether these arguments are valid for Bangladesh—a densely populated country that has experienced significant growth in recent decades. The results suggest that (1) agriculture as a source of income declined significantly over the past two decades; (2) the operated farm size stopped declining in the late 1980s; and (3) that population density relates positively with a host of agricultural intensifications indicators with no evidence of threshold. Historical data on real prices, domestic surpluses, and other macroeconomic variables lend further support to these results. Thus, the paper concludes that small-holding was not a deterrent to structural changes in Bangladesh thus far and that agricultural intensification continued amid intense population pressure.

Keywords: agricultural development; agriculture led development; Development theory; induced innovation; Innovation; panel data estimations; Rural economy; ASIA; BANGLADESH; SOUTH ASIA (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fpr:ifprid:1326

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