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Agriculture in the process of development: A micro-perspective

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  • Michler, Jeffrey D.

Abstract

This paper compares national-level data from India with 40 years of household panel data from rural India to track sectoral changes in employment and income as well as examine the hypothesis of induced innovation in agricultural production. In the national data, India appears to be in the midst of a structural transformation. The share of agriculture in GDP and employment has shrunk while agricultural output continues to grow. This productivity growth appears to adhere to the induced innovation hypothesis, as productivity per hectare has increased more rapidly than productivity per worker. Many of the same patterns exist in the household data. Tracking households across time, I observe agricultural output has increased, despite more households engaging in off-farm labor. Household agricultural production is highly specialized and has increased its reliance on improved inputs. However, while agricultural income has grown, industrial and service income has remained stagnant, and the relative income of these households has declined in recent years.

Suggested Citation

  • Michler, Jeffrey D., 2020. "Agriculture in the process of development: A micro-perspective," World Development, Elsevier, vol. 129(C).
  • Handle: RePEc:eee:wdevel:v:129:y:2020:i:c:s0305750x20300140
    DOI: 10.1016/j.worlddev.2020.104888
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    2. Cariappa, A. G. Adeeth & Sendhil, R, 2021. "Does Institutional Credit Induce on-Farm Investments? Evidence from India," 2021 Conference, August 17-31, 2021, Virtual 315221, International Association of Agricultural Economists.
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    More about this item

    Keywords

    Agricultural production; Technical change; Structural transformation; Induced innovation; India;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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