IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1675.html
   My bibliography  Save this paper

The evolution of tractorization in India’s low-wage economy: Key patterns and implications

Author

Listed:
  • Bhattarai, Madhusudan
  • Joshi, Pramod Kumar
  • Shekhawa, R. S.
  • Takeshima, Hiroyuki

Abstract

This study reviews the evolution of tractor use in India in the past few decades, and supplements this with a panel model analysis using factors associated with state-level tractor density growth. Growth in tractor use in India, unlike that in the United States and Japan, has occurred at relatively low wage rates and with a substantial majority of the workforce remaining in the agricultural sector. Considerable growth in domestic manufacturing has contributed to growth in tractor densities. Tractor density across the 14 major states in India between 1982 and 2012 was positively affected by income per capita, cropping intensity, and the average size of farmland holdings. Tractor intensity grew at a fast pace even in low-wage regions of India, indicating that relatively lower labor wages might not have been a binding factor for diffusion of farm machinery and tractors among smallholding farmers in India.

Suggested Citation

  • Bhattarai, Madhusudan & Joshi, Pramod Kumar & Shekhawa, R. S. & Takeshima, Hiroyuki, 2017. "The evolution of tractorization in India’s low-wage economy: Key patterns and implications," IFPRI discussion papers 1675, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1675
    as

    Download full text from publisher

    File URL: http://ebrary.ifpri.org/utils/getfile/collection/p15738coll2/id/131410/filename/131621.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olmstead, Alan L. & Rhode, Paul W., 2001. "Reshaping The Landscape: The Impact And Diffusion Of The Tractor In American Agriculture, 1910–1960," The Journal of Economic History, Cambridge University Press, vol. 61(3), pages 663-698, September.
    2. Diao, Xinshen & Silver, Jed & Takeshima, Hiroyuki, 2016. "Agricultural mechanization and agricultural transformation:," IFPRI discussion papers 1527, International Food Policy Research Institute (IFPRI).
    3. Carl E. Pray & Latha Nagarajan, 2014. "The transformation of the Indian agricultural input industry: has it increased agricultural R&D?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 145-156, November.
    4. Som P. Pudasaini, 1983. "The Effects of Education in Agriculture: Evidence from Nepal," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(3), pages 509-515.
    5. Richard H. Steckel & William J. White, 2012. "Engines of Growth: Farm Tractors and Twentieth-Century U.S. Economic Welfare," NBER Working Papers 17879, National Bureau of Economic Research, Inc.
    6. Lawrence, P. R. & Pearson, R. A., 2002. "Use of draught animal power on small mixed farms in Asia," Agricultural Systems, Elsevier, vol. 71(1-2), pages 99-110.
    7. Zhang, Xiaobo & Yang, Jin & Reardon, Thomas, 2020. "Mechanization outsourcing clusters and division of labor in Chinese agriculture," IFPRI book chapters, in: An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?, chapter 2, pages 71-96, International Food Policy Research Institute (IFPRI).
    8. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LP, vol. 7(3), pages 281-312, September.
    9. Anupam Sarkar, 2013. "Tractor Production and Sales in India, 1989–2009," Journal, Review of Agrarian Studies, vol. 3(1), pages 55-72, January-J.
    10. Robert Evenson & Prabhu Pingali (ed.), 2007. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 3, number 1.
    11. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447, December.
    12. Hiroyuki Takeshima, 2017. "Custom-hired tractor services and returns to scale in smallholder agriculture: a production function approach," Agricultural Economics, International Association of Agricultural Economists, vol. 48(3), pages 363-372, May.
    13. Xiaobing Wang & Futoshi Yamauchi & Jikun Huang, 2016. "Rising wages, mechanization, and the substitution between capital and labor: evidence from small scale farm system in China," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 309-317, May.
    14. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, March.
    15. Singh, Gajendra, 2015. "Agricultural Mechanisation Development in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(1), pages 1-19.
    16. Hiroyuki Takeshima & Hyacinth O. Edeh & Akeem O. Lawal & Moshudi A. Isiaka, 2015. "Characteristics of Private-Sector Tractor Service Provisions: Insights from Nigeria," The Developing Economies, Institute of Developing Economies, vol. 53(3), pages 188-217, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Takeshima, Hiroyuki & Houssou, Nazaire & Diao, Xinshen, 2018. "Effects of tractor ownership on returns-to-scale in agriculture: Evidence from maize in Ghana," Food Policy, Elsevier, vol. 77(C), pages 33-49.
    2. Takeshima, Hiroyuki & Hatzenbuehler, Patrick L. & Edeh, Hyacinth O., 2020. "Effects of agricultural mechanization on economies of scope in crop production in Nigeria," Agricultural Systems, Elsevier, vol. 177(C).
    3. Hiroyuki Takeshima & Ian Masias & Myat Thida Win & Phoo Pye Zone, 2023. "Effects of COVID‐19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 323-351, February.
    4. Zhou, Xiaoshi & Ma, Wanglin, 2021. "Effects of Agricultural Mechanization on Land Productivity: Evidence from China," 2021 Conference, August 17-31, 2021, Virtual 315143, International Association of Agricultural Economists.
    5. Hiroyuki Takeshima & Rajendra Prasad Adhikari & Anjani Kumar, 2016. "Is Access to Tractor Service a Binding Constraint for Nepali Terai Farmers?," Working Papers id:9604, eSocialSciences.
    6. Aryal, Jeetendra Prakash & Rahut, Dil Bahadur & Thapa, Ganesh & Simtowe, Franklin, 2021. "Mechanisation of small-scale farms in South Asia: Empirical evidence derived from farm households survey," Technology in Society, Elsevier, vol. 65(C).
    7. Wang, Teng & Yi, Fujin & Liu, Huilin & Wu, Ximing & Zhong, Funing, 2021. "Can Agricultural Mechanization Have a Mitigation Effect on China's Yield Variability?," 2021 Conference, August 17-31, 2021, Virtual 315098, International Association of Agricultural Economists.
    8. Takeshima, Hiroyuki, 2017. "Overview of the evolution of agricultural mechanization in Nepal: A focus on tractors and combine harvesters," IFPRI discussion papers 1662, International Food Policy Research Institute (IFPRI).
    9. Diao, Xinshen & Silver, Jed & Takeshima, Hiroyuki, 2016. "Agricultural mechanization and agricultural transformation:," IFPRI discussion papers 1527, International Food Policy Research Institute (IFPRI).
    10. Takeshima, Hiroyuki & Agandin, John & Kolavalli, Shashidhara, 2017. "Growth of modern service providers for the African agricultural sector: An insight from a public irrigation scheme in Ghana," IFPRI discussion papers 1678, International Food Policy Research Institute (IFPRI).
    11. Takeshima, Hiroyuki, 2015. "Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence:," IFPRI discussion papers 1424, International Food Policy Research Institute (IFPRI).
    12. Takeshima, Hiroyuki, 2017. "The roles of agroclimatic similarity and returns on scale in the demand for mechanization: Insights from northern Nigeria," IFPRI discussion papers 1692, International Food Policy Research Institute (IFPRI).
    13. Hatzenbuehler, Patrick L. & Takeshima, Hiroyuki & Edeh, Hyacinth & Lawal, Akeem, 2018. "Cost and policy determinants of features of tractor markets in Nigeria: Case studies of tractor sellers in Kaduna state and tractor owners in Benue state," NSSP working papers 55, International Food Policy Research Institute (IFPRI).
    14. Belton, Ben & Win, Myat Thida & Zhang, Xiaobo & Filipski, Mateusz, 2021. "The rapid rise of agricultural mechanization in Myanmar," Food Policy, Elsevier, vol. 101(C).
    15. Qinan Lu & Xiaodong Du & Huanguang Qiu, 2022. "Adoption patterns and productivity impacts of agricultural mechanization services," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 826-845, September.
    16. Gianko Michailidis & Concepció Patxot & Meritxell Solé, 2019. "Do pensions foster education? An empirical perspective," Applied Economics, Taylor & Francis Journals, vol. 51(38), pages 4127-4150, August.
    17. Yukichi Mano & Kazushi Takahashi & Keijiro Otsuka, 2020. "Mechanization in land preparation and agricultural intensification: The case of rice farming in the Cote d'Ivoire," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 899-908, November.
    18. Takeshima, Hiroyuki, 2015. "Identifying the effects of market imperfections for a scale biased agricultural technology: Tractors in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 211937, International Association of Agricultural Economists.
    19. Idelphonse O. Saliou & Afio Zannou & Augustin K. N. Aoudji & Albert N. Honlonkou, 2020. "Drivers of Mechanization in Cotton Production in Benin, West Africa," Agriculture, MDPI, vol. 10(11), pages 1-13, November.
    20. Yukichi Y. & Mano Yukichi Y. & Takahashi Kazushi & Otsuka Keijiro, 2017. "Contract Farming, Farm Mechanization, and Agricultural Intensification: The Case of Rice Farming in Cote d’Ivoire," Working Papers 157, JICA Research Institute.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1675. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.