Agricultural Growth, Employment and Poverty: Theoretical and Empirical Explorations with Indian data (1970-1993)
There is a rapidly growing literature on the dual concern of promoting agricultural growth and reducing the incidence of rural poverty. However the analysis of the interaction of growth and poverty is an under researched area of economic policy. This paper attempts to further analyse these dual concerns in an integrated manner. A basic endogenous growth model is developed which explicitly includes poor households and a government that has to decide how to allocate resources to the provision of infrastructure and to the public distribution of food grains. The intertemporal maximisation clearly shows the trade-off the government is facing and the indeterminate outcome. The model derives five key relationships: an agricultural metaproduction function (which allows differing temporal and spatial technical progress), rural employment and wage functions, and relationships for the public distribution of food grains and for rural poverty. These structural equations are estimated in a simultaneous setting for fifteen Indian states using eleven years of data for the period 1970 to 1993. Care is taken in the treatment of missing values, the non-stationarity of many of the state variables, the high level of dependencies between the variables (in the form of extreme multicollinearity and endogeneity) and the presence of structural change. We believe that insufficient care has been taken with these important complications in some studies. Robust structural form, net average elasticities and reduced form impact elasticity multipliers are derived. These estimates give valuable insights into the complicated interdependencies of the policy and endogenous variables. Whilst our broad conclusions tend to reinforce the findings of recent studies there are major differences in our estimates and methodology, which includes the conceptualisation, analytic specification and application of appropriate estimation techniques.
|Date of creation:||2000|
|Contact details of provider:|| Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia|
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
More information through EDIRC
References listed on IDEAS
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.:
- Barro, Robert J, 1990.
"Government Spending in a Simple Model of Endogenous Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages 103-126, October.
- Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
- Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
- Robert J. Barro, 1988. "Government Spending in a Simple Model of Endogenous Growth," NBER Working Papers 2588, National Bureau of Economic Research, Inc.
- Howard Pack, 1994. "Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 55-72, Winter.
- World Bank, 2000. "India : Policies to Reduce Poverty and Accelerate Sustainable Development," World Bank Other Operational Studies 15106, The World Bank.
- Sergio T. Rebelo, 1990.
"Long Run Policy Analysis and Long Run Growth,"
NBER Working Papers
3325, National Bureau of Economic Research, Inc.
- Danny Quah, 1992.
"Empirical Cross-Section Dynamics in Economic Growth,"
FMG Discussion Papers
dp154, Financial Markets Group.
- Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
- Danny Quah, 1992. "Empirical cross-section dynamics in economic growth," Discussion Paper / Institute for Empirical Macroeconomics 75, Federal Reserve Bank of Minneapolis.
- Barro, R.J., 1989.
"Economic Growth In A Cross Section Of Countries,"
RCER Working Papers
201, University of Rochester - Center for Economic Research (RCER).
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Kuznets, Simon, 1971.
"Modern Economic Growth: Findings and Reflections,"
Nobel Prize in Economics documents
1971-2, Nobel Prize Committee.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
- Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, vol. 76(1), pages 191-203, March.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Xavier Sala-i-Martin, 1994.
"Lecture notes on economic growth (I): Introduction to the literature and Neoclassical models,"
Economics Working Papers
77, Department of Economics and Business, Universitat Pompeu Fabra.
- Xavier Sala-i-Martin, 1990. "Lecture Notes on Economic Growth(I): Introduction to the Literature and Neoclassical Models," NBER Working Papers 3563, National Bureau of Economic Research, Inc.
- Xavier Sala-i-Martin, 1994.
"Lecture notes on economic growth (II): Five prototype models of endogenous growth,"
Economics Working Papers
78, Department of Economics and Business, Universitat Pompeu Fabra.
- Xavier Sala-i-Martin, 1990. "Lecture Notes on Economic Growth(II): Five Prototype Models of Endogenous Growth," NBER Working Papers 3564, National Bureau of Economic Research, Inc.
- Lau, Lawrence J. & Yotopoulos, Pan A., 1989. "The meta-production function approach to technological change in world agriculture," Journal of Development Economics, Elsevier, vol. 31(2), pages 241-269, October.
- D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," Review of Economic Studies, Oxford University Press, vol. 34(3), pages 249-283.
When requesting a correction, please mention this item's handle: RePEc:uow:depec1:wp00-06. 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: (Peter Siminski)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.