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State-led or market-led green revolution? Role of private irrigation investment vis-a-vis local government programs in West Bengal's farm productivity growth

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  • Bardhan, Pranab
  • Mookherjee, Dilip
  • Kumar, Neha

Abstract

We estimate the role of private investments in irrigation in farm productivity growth in West Bengal, India between 1982 and 95. Using a state-wide farm panel, we find that falling groundwater costs generated significant growth in value added per acre for farms. These resulted from investments in minor irrigation which was stimulated by tenancy registration programs implemented by local governments. This helps account for substantial spillover effects of the tenancy reform on non-tenant farms noted in an earlier study. Hence the West Bengal Green Revolution of the 1980s benefited from complementarity between private investment incentives and state-led institutional reforms.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 99 (2012)
Issue (Month): 2 ()
Pages: 222-235

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Handle: RePEc:eee:deveco:v:99:y:2012:i:2:p:222-235

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Web page: http://www.elsevier.com/locate/devec

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Keywords: Land reforms; Tenancy; Irrigation; Agricultural development; Public–private linkages;

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  1. Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, October.
  2. Pranab Bardhan & Dilip Mookherjee, 2003. "Pro-Poor Targeting and Accountability of Local Governments in West Bengal," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-138, Boston University - Department of Economics.
  3. Sheetal Sekhri, 2008. "Public Provision and Protection of Natural Resources: Groundwater Irrigation in Rural India," Virginia Economics Online Papers 376, University of Virginia, Department of Economics.
  4. Dilip Mookherjee & Pranab Bardhan, 2010. "Subsidized Farm Input Programs and Agricultural Performance: A Farm-Level Analysis of West Bengal’s Green Revolution, 1982–1995," Boston University - Department of Economics - Working Papers Series WP2010-033, Boston University - Department of Economics.
  5. Pranab Bardhan & Dilip Mookherjee, 2010. "Determinants of Redistributive Politics: An Empirical Analysis of Land Reforms in West Bengal, India," American Economic Review, American Economic Association, vol. 100(4), pages 1572-1600, September.
  6. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
  7. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April.
  8. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-93, June.
  9. Partha Dasgupta & Joseph Stiglitz, 1980. "Industrial Structure and the Nature of Innovative Activity (Now published in Economic Journal, Vol.90 (June 1980)pp.226-293.)," STICERD - Theoretical Economics Paper Series /1980/04, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  10. Abhijit Banerjee & Dilip Mookherjee & Kaivan Munshi & Debraj Ray, 2001. "Inequality, Control Rights, and Rent Seeking: Sugar Cooperatives in Maharashtra," Journal of Political Economy, University of Chicago Press, vol. 109(1), pages 138-190, February.
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Cited by:
  1. Pranab Bardhan & Dilip Mookherjee, 2011. "Subsidized Farm Input Programs and Agricultural Performance: A Farm-Level Analysis of West Bengal's Green Revolution, 1982-1995," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 186-214, October.
  2. Deininger, Klaus & Jin, Songqing & Yadav, Vandana, 2012. "Does sharecropping affect productivity and long-term investment ? evidence from West Bengal's tenancy reforms," Policy Research Working Paper Series 6293, The World Bank.
  3. Dilip Mookherjee & Pranab Bardhan & Michael Luca & Francisco Pino, 2010. "Evolution of Land Distribution in West Bengal 1967-2004: Role of Land Reform and Demographic Changes," Boston University - Department of Economics - Working Papers Series WP2010-037, Boston University - Department of Economics.

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