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Rural Poverty and Aggregate Agricultural Performance in Post-independence India

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  • Bell, Clive
  • Rich, Robert

Abstract

This paper examines the movements in, and determinants of, rural poverty in India, using both new series and quite different econometric procedures form those employed in earlier studies. Specifically, issues of simultaneity bias, of autocorrelation in the poverty series, and of generated regressors are addressed within a unified econometric framework. The evidence provides support for the model specifications, with the following conclusions: (1) there was considerable persistence in poverty, (2) poverty was quite sensitive to contemporaneous real agricultural output per head, with long-run elasticities twice short-run ones, (3) there is some evidence that unanticipated inflation increased poverty, and (4), the economic process was probably distributionally neutral Copyright 1994 by Blackwell Publishing Ltd

Suggested Citation

  • Bell, Clive & Rich, Robert, 1994. "Rural Poverty and Aggregate Agricultural Performance in Post-independence India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(2), pages 111-133, May.
    • Handle: RePEc:bla:obuest:v:56:y:1994:i:2:p:111-33
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    Cited by:

    1. Ravallion, Martin & Datt, Gaurav, 1995. "Growth and poverty in rural India," Policy Research Working Paper Series 1405, The World Bank.
    2. Sushanta K. Mallick, 2014. "Disentangling the Poverty Effects of Sectoral Output, Prices, and Policies in India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 773-801, December.
    3. Sanghamitra Bandyopadhyay, 2011. "Rich States, Poor States: Convergence And Polarisation In India," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(3), pages 414-436, July.
    4. Gaurav Datt & Martin Ravallion, 2002. "Is India's Economic Growth Leaving the Poor Behind?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 89-108, Summer.
    5. Mukherjee, Anit N. & Kuroda, Yoshimi, 2002. "Convergence in rural development: evidence from India," Journal of Asian Economics, Elsevier, vol. 13(3), pages 385-398.
    6. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    7. Baba, Sajad H. & Saini, A.S. & Sharma, K.D. & Thakur, D.R., 2010. "Impact of Investment on Agricultural Growth and Rural Development in Himachal Pradesh: Dynamics of Public and Private Investment," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(1), pages 1-24.
    8. Bigsten , Arne & Levin, Jörgen, 2000. "Growth, Income Distribution, and Poverty: A Review," Working Papers in Economics 32, University of Gothenburg, Department of Economics.
    9. Mukherjee, Anit N. & Kuroda, Yoshimi, 2003. "Productivity growth in Indian agriculture: is there evidence of convergence across states?," Agricultural Economics, Blackwell, vol. 29(1), pages 43-53, July.
    10. Gaurav Datt & Martin Ravallion, 1998. "Why Have Some Indian States Done Better than Others at Reducing Rural Poverty?," Economica, London School of Economics and Political Science, vol. 65(257), pages 17-38, February.
    11. Kumar, Anjani & Kumar, Praduman & Sharma, Alakh N., 2011. "Rural Poverty and Agricultural Growth in India: Implications for the Twelfth Five Year Plan," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(3), pages 1-10.
    12. Datt, Gaurav & Ravallion, Martin, 1997. "Why have some Indian states performed better than others at reducing rural poverty?," FCND discussion papers 26, International Food Policy Research Institute (IFPRI).
    13. Andrew Goudie & Paul Ladd, 1999. "Economic growth, poverty and inequality," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(2), pages 177-195.
    14. Tarlok Singh, 2022. "Economic growth and the state of poverty in India: sectoral and provincial perspectives," Economic Change and Restructuring, Springer, vol. 55(3), pages 1251-1302, August.
    15. Björn Brey & Matthias S. Hertweck, 2023. "The dynamic effects of monsoon rainfall shocks on agricultural yield, wages, and food prices in India," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(3), pages 616-654, July.
    16. Arne Bigsten & Jörgen Levin, 2001. "Growth, Income Distribution, and Poverty," WIDER Working Paper Series DP2001-129, World Institute for Development Economic Research (UNU-WIDER).
    17. Fan, Shenggen & Hazell, P. B. R., 1997. "Should India invest more in less-favored areas?:," EPTD discussion papers 25, International Food Policy Research Institute (IFPRI).
    18. Fan, Shenggen & Hazell, P. B. R., 1999. "Are returns to public investment lower in less-favored rural areas?: an empirical analysis of India," EPTD discussion papers 43, International Food Policy Research Institute (IFPRI).
    19. M. H. Suryanarayana, 2002. "Poverty in India: Misspecified Policies and Estimates," WIDER Working Paper Series DP2002-15, World Institute for Development Economic Research (UNU-WIDER).
    20. Kuldeep Singh & Madhvendra Misra, 2021. "Developing an agricultural entrepreneur inclination model for sustainable agriculture by integrating expert mining and ISM–MICMAC," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5122-5150, April.
    21. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).
    22. Thath, Rido, 2016. "The Impact of Agricultural Land and Labor Productivity on Poverty: The Case of Rice Farming Households in Cambodia," MPRA Paper 70920, University Library of Munich, Germany.
    23. Fan, Shenngen & Hazell, Peter & Haque, T., 2000. "Targeting public investments by agro-ecological zone to achieve growth and poverty alleviation goals in rural India," Food Policy, Elsevier, vol. 25(4), pages 411-428, August.

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