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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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    2. 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.
    3. Pranab K. Bardhan & Michael Luca & Dilip Mookherjee & Francisco J. Pino, 2011. "Evolution of Land Distribution in West Bengal 1967-2004: Role of Land Reform," WIDER Working Paper Series wp-2011-031, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Debolina Biswas, 2020. "Political Economy of Inequality of Rural Bengal in Post-Reform Period: Development or Proletarization?," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 9(3), pages 301-325, December.
    2. Sonia Bhalotra & Abhishek Chakravarty & Dilip Mookherjee & Francisco J. Pino, 2019. "Property Rights and Gender Bias: Evidence from Land Reform in West Bengal," American Economic Journal: Applied Economics, American Economic Association, vol. 11(2), pages 205-237, April.
    3. 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.
    4. Ebata, Ayako & Hernandez, Manuel A., 2017. "Linking smallholder farmers to markets on extensive and intensive margins: Evidence from Nicaragua☆," Food Policy, Elsevier, vol. 73(C), pages 34-44.
    5. Stephen C. Smith & Ram Fishman & Vida BobicÌ & Munshi Sulaiman, 2017. "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.
    6. Carter, Michael R. & Tjernström, Emilia & Toledo, Patricia, 2019. "Heterogeneous impact dynamics of a rural business development program in Nicaragua," Journal of Development Economics, Elsevier, vol. 138(C), pages 77-98.
    7. Ghatak, Maitreesh & Karaivanov, Alexander, 2014. "Contractual structure in agriculture with endogenous matching," Journal of Development Economics, Elsevier, vol. 110(C), pages 239-249.
    8. 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.
    9. 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.
    10. Emerick, Kyle, 2018. "Trading frictions in Indian village economies," Journal of Development Economics, Elsevier, vol. 132(C), pages 32-56.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. Holden, Stein T., 2018. "The Economics of Fertilizer Subsidies," CLTS Working Papers 9/18, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    16. Fishman, Ram & Smith, Stephen C. & Bobic, Vida & Sulaiman, Munshi, 2019. "Can Agricultural Extension and Input Support Be Discontinued? Evidence from a Randomized Phaseout in Uganda," IZA Discussion Papers 12476, Institute of Labor Economics (IZA).
    17. Dinda, Soumyananda, 2015. "Development and Land Acquisition in the View of Law and Economics," MPRA Paper 72848, University Library of Munich, Germany.

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    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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    1. Subsidized Farm Input Programs and Agricultural Performance: A Farm-Level Analysis of West Bengal's Green Revolution, 1982-1995 (American Economic Journal: Applied Economics 2011) in ReplicationWiki

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