Rural Infrastructure, Land Productivity and Crop Diversification in Odisha, India: An Assessment

Chittaranjan Nayak

MPRA Paper from University Library of Munich, Germany

Abstract: Identifying the sources of agricultural growth in India has been an unsettled area of research. The debate mainly centres around the relative efficacy of price and non-price factors. The present study examines the impact of some non-price factors including rural infrastructure. Taking land productivity and crop diversification as the two principal indicators of agricultural growth, the study measures changes in these indicators vis-à-vis the stock of rural infrastructure in Odisha, an eastern Indian state. By using district-wise cross section data for the year 2011-12, indices for rural infrastructure are prepared with help of the Principal Components Analysis, and crop diversity indices are measured by the Theil Entropy formula. The study observes that rural infrastructure has significant positive impact on land productivity. However, along with high yielding variety paddy, infrastructure contributes to concentration rather than crop diversification. In addition, the study also observes persistence of regional divide in infrastructure, which may be considered as a major concern having wider implications.

Keywords: Agricultural productivity; crop diversification; rural infrastructure; regional disparity; principal component analysis (search for similar items in EconPapers)
JEL-codes: Q10 Q15 Q18 (search for similar items in EconPapers)
Date: 2015-05-15, Revised 2017-10-19
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