Dynamics of agricultural wage and rice price in Bangladesh
Like many other Asian countries, the causal relationship between agricultural productivity and the incidence of rural poverty has been a widely debated subject in Bangladesh. A number of studies argued that the real agricultural wage rate was declining during the period when the country had experienced overall agricultural growth. This paper contributes to this debate in two ways: i) it re-examines the methodological aspects of past studies and presents alternative estimates; and ii) analyzes dynamics of agricultural wage and rice price using the most recent data. Multivariate co-integration techniques are used to examine the long and short-run relationships among agricultural wage rate, rice price, urban wage rate, and other prices. The results show that agricultural wage and rice price maintained strong co-integrating relationships during the periods 1949/50 -1979/80; and the elasticities of agricultural wage rate with respect to rice price are substantially higher than what past studies had reported. Analyses of post-famine data (1976/77-1998/99) suggest that rice price, which was strongly co-integrated with agricultural wage rate until the early 80s, is no longer a significant determinant of wage formation in Bangladesh.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: 2033 K Street, NW, Washington, DC 20006|
Web page: http://www.ifpri.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ahmed, Raisuddin, 1995. "Liberalization of agricultural input markets in Bangladesh: process, impact, and lessons," Agricultural Economics, Blackwell, vol. 12(2), pages 115-128, August.
- Jurgen A. Doornik & Henrik Hansen, 2008.
"An Omnibus Test for Univariate and Multivariate Normality,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 70(s1), pages 927-939, December.
- Jurgen A Doornik & Henrik Hansen, . "An omnibus test for univariate and multivariate normalit," Economics Papers W4&91., Economics Group, Nuffield College, University of Oxford.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
- Engle, Robert F & Granger, Clive W J, 1987.
"Co-integration and Error Correction: Representation, Estimation, and Testing,"
Econometric Society, vol. 55(2), pages 251-76, March.
- Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- David A. Dickey & Dennis W. Jansen & Daniel L. Thornton, 1991. "A primer on cointegration with an application to money and income," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 58-78.
- Boswijk, Peter & Franses, Philip Hans, 1992. "Dynamic Specification and Cointegration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 369-81, August.
- Johansen, S., 1991.
"Determination of Cointegration Rank in the Presence of a Linear Trend,"
76a, Helsinki - Department of Economics.
- Johansen, Soren, 1992. "Determination of Cointegration Rank in the Presence of a Linear Trend," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 383-97, August.
- Hendry, David F. & Pagan, Adrian R. & Sargan, J.Denis, 1984. "Dynamic specification," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 18, pages 1023-1100 Elsevier.
- Goletti, Francesco, 1994. "The changing public role in a rice economy approaching self-sufficiency: the case of Bangladesh," Research reports 98, International Food Policy Research Institute (IFPRI).
- Granger, Clive W J, 1986. "Developments in the Study of Cointegrated Economic Variables," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 213-28, August.
- Johansen, Søren & Juselius, Katarina, 1992. "Testing structural hypotheses in a multivariate cointegration analysis of the PPP and the UIP for UK," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 211-244.
- Ahmed, Iqbal, 1981. "Wage Determination in Bangladesh Agriculture," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 298-322, July.
- Boyce, James K & Ravallion, Martin, 1991. "A Dynamic Econometric Model of Agricultural Wage Determination in Bangladesh," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(4), pages 361-76, November.
- Hossain, Mahabub, 1988. "Nature and impact of the Green Revolution in Bangladesh:," Research reports 67, International Food Policy Research Institute (IFPRI).
- Ahmed, Raisuddin, 1995. "Liberalization of agricultural input markets in Bangladesh: process, impact, and lessons," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 12(2), August.
When requesting a correction, please mention this item's handle: RePEc:fpr:mssddp:44. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.