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Subsidized Farm Input Programs and Agricultural Performance: A Farm-Level Analysis of West Bengal's Green Revolution, 1982-1995

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  • Pranab Bardhan
  • Dilip Mookherjee

Abstract

We examine the role of delivery of subsidized seeds and fertilizers in the form of agricultural minikits by local governments in three successive farm panels in West Bengal spanning 1982-1995. These programs significantly raised farm value added per acre, accounting for almost two-thirds of the observed growth. The estimates are robust to possible endogeneity of program placement, controls for farm and year effects, other programs of agricultural development, local weather, and price shocks. The effects of the kits delivery program overshadowed the effects of other rural development programs, including the tenancy registration program Operation Barga. (JEL O13, Q12, Q16, Q18)

Suggested Citation

  • 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.
    • Handle: RePEc:aea:aejapp:v:3:y:2011:i:4:p:186-214
    Note: DOI: 10.1257/app.3.4.186
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    References listed on IDEAS

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    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    2. Bardhan, Pranab & Mookherjee, Dilip, 2006. "Pro-poor targeting and accountability of local governments in West Bengal," Journal of Development Economics, Elsevier, vol. 79(2), pages 303-327, April.
    3. Timothy Besley & Robin Burgess, 2000. "Land Reform, Poverty Reduction, and Growth: Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 389-430.
    4. Dale W. Jorgenson, 1967. "Surplus Agricultural Labour And The Development Of A Dual Economy," Oxford Economic Papers, Oxford University Press, vol. 19(3), pages 288-312.
    5. Bardhan, Pranab & Mookherjee, Dilip & Kumar, Neha, 2012. "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," Journal of Development Economics, Elsevier, vol. 99(2), pages 222-235.
    6. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    7. Bardhan, Pranab & Udry, Christopher, 1999. "Development Microeconomics," OUP Catalogue, Oxford University Press, number 9780198773719.
    8. 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.
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    Citations

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    Cited by:

    1. Sonia Bhalotra & Abhishek Chakravarty & Dilip Mookherjee & Francisco J. Pino, "undated". "Property Rights and Gender Bias: Evidence from Land Reform in West Bengal," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-281, Boston University - Department of Economics.
    2. Gafaro, Margarita & Ibanez, Ana Maria & Zarruk, David, 2012. "Equidad y eficiencia rural en Colombia: una discusión de políticas para el acceso a la tierra," Documentos CEDE Series 146477, Universidad de Los Andes, Economics Department.
    3. Stephen C. Smith & Ram Fishman & Vida BobicÌ & Munshi Sulaiman, "undated". "How Sustainable Are Benefits from Extension for Smallholder Farmers? Evidence from a Randomised Phase-Out of the BRAC Program in Uganda," Working Papers 2017-1, The George Washington University, Institute for International Economic Policy.
    4. Bardhan, Pranab & Mookherjee, Dilip & Kumar, Neha, 2012. "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," Journal of Development Economics, Elsevier, vol. 99(2), pages 222-235.
    5. Ghatak, Maitreesh & Karaivanov, Alexander, 2014. "Contractual structure in agriculture with endogenous matching," Journal of Development Economics, Elsevier, vol. 110(C), pages 239-249.
    6. Bardhan, Pranab & Luca, Michael & Mookherjee, Dilip & Pino, Francisco, 2014. "Evolution of land distribution in West Bengal 1967–2004: Role of land reform and demographic changes," Journal of Development Economics, Elsevier, vol. 110(C), pages 171-190.
    7. Ghatak, Maitreesh & Mookherjee, Dilip, 2014. "Land acquisition for industrialization and compensation of displaced farmers," Journal of Development Economics, Elsevier, vol. 110(C), pages 303-312.
    8. Brainerd, Elizabeth & Menon, Nidhiya, 2014. "Seasonal effects of water quality: The hidden costs of the Green Revolution to infant and child health in India," Journal of Development Economics, Elsevier, vol. 107(C), pages 49-64.
    9. repec:eee:deveco:v:132:y:2018:i:c:p:32-56 is not listed on IDEAS
    10. Mendola, Mariapia & Simtowe, Franklin, 2015. "The Welfare Impact of Land Redistribution: Evidence from a Quasi-Experimental Initiative in Malawi," World Development, Elsevier, vol. 72(C), pages 53-69.
    11. Dinda, Soumyananda, 2015. "Development and Land Acquisition in the View of Law and Economics," MPRA Paper 72848, University Library of Munich, Germany.
    12. Kurosaki, Takashi & Parinduri, Rasyad & Paul, Saumik, 2016. "Evaluating Efficiency Gains from Tenancy Reform Targeting a Heterogeneous Group of Sharecroppers: Evidence from India," CEI Working Paper Series 2016-10, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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