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Rural Poverty and Relative Prices in India

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  • Ghose, A K

Abstract

This paper begins with the observation that there has been a trend decline, albeit small, in rural poverty during 1956-83, but this is obscured by the substantial short-run fluctuations around the trend. It argues that while the trend is attributable to redistributive policies, the short-run fluctuations are adequately explained by the fluctuations in agricultural output and in relative prices of agricultural products vis-a-vis manufactures. In view of the finding that rising relative agricultural prices increase rural poverty, the paper goes on to analyze the process of determination of relative prices. This analysis highlights the characteristics of the inflationary process and the role of agricultural price policy in the Indian economy. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Ghose, A K, 1989. "Rural Poverty and Relative Prices in India," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 13(2), pages 307-331, June.
    • Handle: RePEc:oup:cambje:v:13:y:1989:i:2:p:307-31
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    1. repec:ilo:ilowps:285175 is not listed on IDEAS
    2. repec:ilo:ilowps:286955 is not listed on IDEAS
    3. Hazell, P. B. R. & Haddad, Lawrence James, 2001. "Agricultural research and poverty reduction:," 2020 vision discussion papers 34, International Food Policy Research Institute (IFPRI).
    4. Singh, A. & Tabatabai H., 1992. "World economic crisis and third world agriculture: the changing role of agriculture in economic development," ILO Working Papers 992869553402676, International Labour Organization.
    5. Fan, Shenngen & Hazell, Peter & Haque, T., 2000. "Targeting public investments by agro-ecological zone to achieve growth and poverty alleviation goals in rural India," Food Policy, Elsevier, vol. 25(4), pages 411-428, August.
    6. Surajit Deb, 2002. "The Debate on Agriculture-Industry Terms of Trade in India," Working papers 109, Centre for Development Economics, Delhi School of Economics.
    7. K.P. Kannan, 1995. "Public Intervention and Poverty Alleviation: A Study of the Declining Incidence of Rural Poverty in Kerala, India," Development and Change, International Institute of Social Studies, vol. 26(4), pages 701-728, October.
    8. Tabatabai H., 1991. "Poverty monitoring in the rural sector," ILO Working Papers 992851753402676, International Labour Organization.
    9. S. Mahendra Dev, 2017. "Poverty and Employment: Roles of Agriculture and Non-agriculture," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(1), pages 57-80, March.
    10. Fan, Shenggen & Hazell, P. B. R., 1997. "Should India invest more in less-favored areas?:," EPTD discussion papers 25, International Food Policy Research Institute (IFPRI).
    11. Fan, Shenggen & Hazell, P. B. R., 1999. "Are returns to public investment lower in less-favored rural areas?: an empirical analysis of India," EPTD discussion papers 43, International Food Policy Research Institute (IFPRI).
    12. M. H. Suryanarayana, 2002. "Poverty in India: Misspecified Policies and Estimates," WIDER Working Paper Series DP2002-15, World Institute for Development Economic Research (UNU-WIDER).
    13. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).

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