IDEAS home Printed from https://ideas.repec.org/a/eaa/aeinde/v23y2023i1_6.html
   My bibliography  Save this article

Role Of Climate Change, Institutional Credit And Public Sector Investment In Agricultural Productivity In India, 1970-2018

Author

Listed:
  • Hrushikesh MALLICK

Abstract

Considering a broad set of determinants such as climatic factors (rainfall and temperature), institutional credit allocation, gross capital formation by private and public sectors and domestic demand sources along with other inputs used in agricultural production, we examine whether these factors influence agricultural productivity in India. Using cointegration, we find that rainfall, a climatic factor significantly augments agricultural productivity, while average temperature has no influence on it. The long-term institutional credit significantly improves agricultural productivity than short-term credit. Further, we find public investment potentially improves agricultural productivity than private investment, justifying tapping productivity potential of agriculture by stepping up public sector investment and deploying greater long-term institutional credits. Among other inputs, fertiliser use, irrigation and agricultural labour forces significantly contribute to raising productivity, while increasing pesticide use doesn’t yield productivity gains. These key findings are potentially useful for agricultural policy in India for achieving sustainable growth targets.

Suggested Citation

  • Hrushikesh MALLICK, 2023. "Role Of Climate Change, Institutional Credit And Public Sector Investment In Agricultural Productivity In India, 1970-2018," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 23(1), pages 125-158.
    • Handle: RePEc:eaa:aeinde:v:23:y:2023:i:1_6
    as

    Download full text from publisher

    File URL: http://www.usc.es/~economet/reviews/aeid2316.pdf
    Download Restriction: No
    ---><---

    References listed on IDEAS

    as
    1. Vernon W. Ruttan, 2002. "Productivity Growth in World Agriculture: Sources and Constraints," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 161-184, Fall.
    2. GUISAN, Maria-Carmen, 2021. "Employment By Sector And Development In India For 1950- 2020 And International Comparisons With China And Oecd Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 21(1), pages 59-70.
    3. GUISAN, Maria-Carmen & EXPOSITO, Pilar, 2020. "Food, Agriculture, Production, Population And Poverty In The World, 2000-2017: Priorities For Sustainable Development," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 20(1), pages 137-150.
    4. Xiaobai Shen, 2010. "Understanding the Evolution of Rice Technology in China - From Traditional Agriculture to GM Rice Today," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1026-1046.
    5. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331, Elsevier.
    6. Johnston, Bruce F, 1970. "Agriculture and Structural Transformation in Developing Countries: A Survey of Research," Journal of Economic Literature, American Economic Association, vol. 8(2), pages 369-404, June.
    7. Ramakumar, R. & Chavan, Pallavi, 2014. "Bank Credit to Agriculture in India in the 2000s: Dissecting the Revival," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 4(01), July.
    8. repec:icf:icfjae:v:03:y:2004:i:5:p:7-17 is not listed on IDEAS
    9. Ravindra H. Dholakia & Bakul H. Dholakia, 1993. "Growth of Total Factor Productivity in Indian Agriculture," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 28(1), pages 25-40, January.
    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. Andersson, Martin & Rohne Till, Emelie, 2017. "Between the Engine and the Fifth Wheel: An Analytical Survey of the Shifting Roles of Agriculture in Development Theory," Lund Papers in Economic History 163, Lund University, Department of Economic History.
    2. Bruno Dorin & Jean Charles Hourcade & Michel Benoit-Cattin, 2013. "A World without Farmers ? The Lewis Path Revisited," Working Papers hal-00866413, HAL.
    3. Tschirley, David L. & Benfica, Rui M.S., 2000. "O Papel do Mercado de Trabalho, Microempresas, e Agricultura na Reducao da Pobreza Rural em Mocambique," Food Security Collaborative Policy Briefs 55220, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Diao, Xinshen & Magalhaes, Eduardo & Silver, Jed, 2019. "Cities and rural transformation: A spatial analysis of rural livelihoods in Ghana," World Development, Elsevier, vol. 121(C), pages 141-157.
    5. Diao, Xinshen & Hazell, Peter B. R. & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    6. Digvijay S. Negi & Pratap S. Birthal & Devesh Roy & Jaweriah Hazrana, 2020. "Market access, price policy and diversification in Indian agriculture," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2020-009, Indira Gandhi Institute of Development Research, Mumbai, India.
    7. Surya Bhushan, 2021. "Labour Productivity Dynamics in Indian Agriculture: 2000–2016," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 371-388, June.
    8. Camaioni, Beatrice & Esposti, Roberto & Lobianco, Antonello & Pagliacci, Francesco & Sotte, Franco, 2013. "How rural is the EU RDP? An analysis through spatial fund allocation," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-24, December.
    9. Chapoto, A. & Houssou, N. & Asante-Addo, C. & Mabiso, A., 2018. "Can smallholder farmers grow? Perspectives from the rise of indigenous small-scale farmers in Ghana," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277225, International Association of Agricultural Economists.
    10. Tschirley, David L. & Benfica, Rui M.S., 2000. "Smallholder Agriculture, Wage Labour, and Rural Poverty Alleviation in Mozambique: What Does the Evidence Tell Us?," Food Security Collaborative Working Papers 56041, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Scheierling, Susanne M. & Treguer, David O. & Booker, James F., 2015. "Water Productivity in Agriculture: Looking for Water in the Agricultural Productivity and Efficiency Literature," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205677, Agricultural and Applied Economics Association.
    12. Managi, Shunsuke, 2006. "Are there increasing returns to pollution abatement? Empirical analytics of the Environmental Kuznets Curve in pesticides," Ecological Economics, Elsevier, vol. 58(3), pages 617-636, June.
    13. Bianca AVRAM POP & Simona SABOU, 2018. "The Role Of Agriculture In Romanian Development," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 5-18, March.
    14. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    15. Shifa, Abdulaziz B., 2011. "Does agricultural growth have a causal effect on manufacturing growth?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116003, European Association of Agricultural Economists.
    16. Rod Tyers & Qun Shi, 2007. "Demographic Change and Policy Responses: Implications for the Global Economy," The World Economy, Wiley Blackwell, vol. 30(4), pages 537-566, April.
    17. Chand, Ramesh, 2000. "Emerging Trends and Regional Variations in Agricultural Investments and their Implications for Growth and Equity," Policy Papers 345046, ICAR National Institute of Agricultural Economics and Policy Research (NIAP).
    18. Ignaciuk, Ada & Ilicic, Joanna & Asprooth, Lauren & Sitko, Nicholas J. & Bernard, Angela & Maggio, Giuseppe & Tubiello, Francesco N. & Mueller, Marc, 2021. "Progress towards sustainable agriculture – Drivers of change," FAO Agricultural Development Economics Technical Study 319833, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    19. Julian M. Alston & Philip G. Pardey, 2014. "Agriculture in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 121-146, Winter.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

    Statistics

    Access and download statistics

    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:eaa:aeinde:v:23:y:2023:i:1_6. 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: M. Carmen Guisan (email available below). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    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.