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Poverty, Agricultural Production and Prices in Rural India--A Reformulation

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  • Gaiha, Raghav

Abstract

The empirical analysis at the all-India level demonstrates that, while the level of agricultural production and rural poverty were inversely related, unanticipated consumer price increases aggravated rural poverty. Whether the advent of the new agricultural technology in the late 1960s altered the relationships in question is also considered. During the new technology phase, the coefficient of agricultural production ceased to be significant, while that of unanticipated price changes continued to be significant. Rationalization of the absence of a significant (inverse) relationship between rural poverty and agricultural production at the state-level, in terms of distress migration between neighboring states, is questioned and an alternative explanation is provided. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Gaiha, Raghav, 1989. "Poverty, Agricultural Production and Prices in Rural India--A Reformulation," Cambridge Journal of Economics, Oxford University Press, vol. 13(2), pages 333-352, June.
  • Handle: RePEc:oup:cambje:v:13:y:1989:i:2:p:333-52
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    References listed on IDEAS

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    1. Michael G. Akritas & Jouni Kuha & D. Wayne Osgood, 2002. "Rejoinder," Sociological Methods & Research, , vol. 30(3), pages 460-462, February.
    2. Terry Peach, 2002. "Interpreting Ricardo: a further reply to Sraffians," Cambridge Journal of Economics, Oxford University Press, vol. 26(3), pages 381-391, May.
    3. Costabile, Lilia, 1983. "Natural Prices, Market Prices and Effective Demand in Malthus," Australian Economic Papers, Wiley Blackwell, vol. 22(4), pages 144-170, June.
    4. Peach,Terry, 1993. "Interpreting Ricardo," Cambridge Books, Cambridge University Press, number 9780521260862, March.
    5. Heinz D. Kurz, 2002. "Interpreting Ricardo: a rejoinder to Peach," Cambridge Journal of Economics, Oxford University Press, vol. 26(3), pages 371-380, May.
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    Cited by:

    1. Katsushi Imai & Raghav Gaiha, 2003. "Millennium Development Goals, Agricultural Growth and Openness," Economics Series Working Papers 161, University of Oxford, Department of Economics.
    2. repec:ilo:ilowps:286955 is not listed on IDEAS
    3. 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.
    4. Suryanarayana, M.H., 2002. "Poverty in India: Misspecified Policies and Estimates," WIDER Working Paper Series 015, World Institute for Development Economic Research (UNU-WIDER).
    5. Ravallion, Martin, 2000. "Prices, wages and poverty in rural India: what lessons do the time series data hold for policy?," Food Policy, Elsevier, vol. 25(3), pages 351-364, June.
    6. Amita Shah, 2010. "Natural Resources and Chronic Poverty in India: A Review of Issues and Evidence," Working Papers id:2773, eSocialSciences.

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