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Caste as an Impediment to Trade

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  • Siwan Anderson
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    Abstract

    We compare outcomes across two types of villages in rural India. Villages vary by which caste is dominant (owns the majority of land): either a low or high caste. The key finding is that income is substantially higher for low-caste households residing in villages dominated by a low caste. This seems to be due to a trade breakdown in irrigation water across caste groups. All else equal, lower caste water buyers have agricultural yields which are 45 percent higher if they reside in a village where water sellers are of the same caste compared to one where they are not. (JEL O12, O13, O17, O18, Q15, R23, Z13)

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/app.3.1.239
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    Bibliographic Info

    Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

    Volume (Year): 3 (2011)
    Issue (Month): 1 (January)
    Pages: 239-63

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    Handle: RePEc:aea:aejapp:v:3:y:2011:i:1:p:239-63

    Note: DOI: 10.1257/app.3.1.239
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    Cited by:
    1. Surajeet Chakravarty & Miguel A. Fonseca, 2012. "The Effect of Social Fragmentation on Public Good Provision: an Experimental Study," Discussion Papers 1207, Exeter University, Department of Economics.
    2. Natalia Montinari & Antonio Nicolo & Regine Oexl, 2012. "Mediocrity and induced reciprocity," Working Papers 2012-19, Faculty of Economics and Statistics, University of Innsbruck.
    3. Sharmistha Self & Richard Grabowski, 2013. "Female Autonomy In Rural North India: Impact Of Economic, Social, And Political Factors," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(1), pages 59-82, March.
    4. Choy, James, 2013. "A Theory of Cooperation through Social Division, with Evidence from Nepal," CAGE Online Working Paper Series 114, Competitive Advantage in the Global Economy (CAGE).
    5. Jacoby, Hanan G. & Mansuri, Ghazala, 2011. "Crossing boundaries : gender, caste and schooling in rural Pakistan," Policy Research Working Paper Series 5710, The World Bank.

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