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Irrigation and the spatial pattern of local economic development in India

Author

Listed:
  • Blakeslee, David
  • Dar, Aaditya
  • Fishman, Ram
  • Malik, Samreen
  • Pellegrina, Heitor S.
  • Bagavathinathan, Karan Singh

Abstract

We study the long-term impact of large-scale irrigation infrastructure on the composition of local economic activity in India. Our analysis uses high-resolution spatial data covering approximately 150,000 villages and towns and exploits spatial discontinuities in the coverage of irrigation projects. Irrigation increases agricultural output, wealth, and population density in rural villages. However, in towns it reduces population and nightlight density, the size of the non-agricultural sector, and large-firm activity. These results highlight the heterogeneous impacts that agricultural productivity gains can have on the patterns local economic development.

Suggested Citation

  • Blakeslee, David & Dar, Aaditya & Fishman, Ram & Malik, Samreen & Pellegrina, Heitor S. & Bagavathinathan, Karan Singh, 2023. "Irrigation and the spatial pattern of local economic development in India," Journal of Development Economics, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:deveco:v:161:y:2023:i:c:s0304387822001390
    DOI: 10.1016/j.jdeveco.2022.102997
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    2. Yanlei Gao & Yuan Tian & Guangwan Tan & Xiudong Wang, 2023. "Impact of Urbanization on Cropping Structure: Empirical Evidence from China," Agriculture, MDPI, vol. 13(6), pages 1-17, May.
    3. Manh Hung Do & Trung Thanh Nguyen, 2023. "Does irrigation development mitigate weather extremes’ impacts and reduce poverty? Evidence from rural Southeast Asia," TVSEP Working Papers wp-034, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
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    More about this item

    Keywords

    Irrigation; Urbanization; Development;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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