Agricultural productivity, inter-sectoral labor shift, and economic growth in India
In this paper, we study the transformation process Indian agriculture exhibited in the recent past, studying its policy implications. Between the years 2005-06 and 2015-16, more than 52 million workers left agriculture, which did not have any effect on agricultural output due to productivity improve...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2020
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/143524 |
| _version_ | 1855536887635116032 |
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| author | Balaji, S. J. Babu, Suresh Chandra |
| author_browse | Babu, Suresh Chandra Balaji, S. J. |
| author_facet | Balaji, S. J. Babu, Suresh Chandra |
| author_sort | Balaji, S. J. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | In this paper, we study the transformation process Indian agriculture exhibited in the recent past, studying its policy implications. Between the years 2005-06 and 2015-16, more than 52 million workers left agriculture, which did not have any effect on agricultural output due to productivity improvements. We estimate the contribution of productivity growth and structural change in agriculture to national productivity growth during 1981-2016. We estimate differentials in agricultural productivity and in their ability to contribute to the structural change process for 21 major states of India. Using revised employment estimates, we trace major changes during the pre-reforms (before 1991) and post-reforms periods. Results show that in the pre-reforms period, the impact of productivity improvements in agriculture on agricultural output was equated by the new workforce entering into this sector, leading to a stagnant labor productivity trend. The labor-shift from agriculture during the early years of the post-reforms period, which increased further in the next decade, has led to a consistent rise in agricultural productivity. In the absence of reforms and the associated labor shift, the productivity growth in Indian agriculture would have been much lower. A similar labor shift during the last decade has not affected agricultural output, which has risen more rapidly. This result holds true for almost all states studied. There exists a positive relation between labor-shift and agricultural output in a cluster of states. Decomposition results indicate ‘within-sector’ productivity growth is the major source of overall growth, with a rising contribution of ‘structural change’. Studying the sources of growth across states offers new scope to achieve inter-sectoral productivity convergence. |
| format | Artículo preliminar |
| id | CGSpace143524 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1435242025-12-08T10:11:39Z Agricultural productivity, inter-sectoral labor shift, and economic growth in India Balaji, S. J. Babu, Suresh Chandra structural adjustment economic growth degradation agricultural growth labour agriculture labour productivity productivity agricultural productivity In this paper, we study the transformation process Indian agriculture exhibited in the recent past, studying its policy implications. Between the years 2005-06 and 2015-16, more than 52 million workers left agriculture, which did not have any effect on agricultural output due to productivity improvements. We estimate the contribution of productivity growth and structural change in agriculture to national productivity growth during 1981-2016. We estimate differentials in agricultural productivity and in their ability to contribute to the structural change process for 21 major states of India. Using revised employment estimates, we trace major changes during the pre-reforms (before 1991) and post-reforms periods. Results show that in the pre-reforms period, the impact of productivity improvements in agriculture on agricultural output was equated by the new workforce entering into this sector, leading to a stagnant labor productivity trend. The labor-shift from agriculture during the early years of the post-reforms period, which increased further in the next decade, has led to a consistent rise in agricultural productivity. In the absence of reforms and the associated labor shift, the productivity growth in Indian agriculture would have been much lower. A similar labor shift during the last decade has not affected agricultural output, which has risen more rapidly. This result holds true for almost all states studied. There exists a positive relation between labor-shift and agricultural output in a cluster of states. Decomposition results indicate ‘within-sector’ productivity growth is the major source of overall growth, with a rising contribution of ‘structural change’. Studying the sources of growth across states offers new scope to achieve inter-sectoral productivity convergence. 2020-05-01 2024-05-22T12:14:50Z 2024-05-22T12:14:50Z Working Paper https://hdl.handle.net/10568/143524 en https://hdl.handle.net/10568/154462 https://doi.org/10.1016/j.worlddev.2013.10.012 https://doi.org/10.1093/wber/lhw070 https://doi.org/10.1016/j.worlddev.2017.12.016 Open Access application/pdf International Food Policy Research Institute Balaji, S. J.; and Babu, Suresh Chandra. 2020. Agricultural productivity, inter-sectoral labor shift, and economic growth in India. IFPRI Discussion Paper 1943. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.133787. |
| spellingShingle | structural adjustment economic growth degradation agricultural growth labour agriculture labour productivity productivity agricultural productivity Balaji, S. J. Babu, Suresh Chandra Agricultural productivity, inter-sectoral labor shift, and economic growth in India |
| title | Agricultural productivity, inter-sectoral labor shift, and economic growth in India |
| title_full | Agricultural productivity, inter-sectoral labor shift, and economic growth in India |
| title_fullStr | Agricultural productivity, inter-sectoral labor shift, and economic growth in India |
| title_full_unstemmed | Agricultural productivity, inter-sectoral labor shift, and economic growth in India |
| title_short | Agricultural productivity, inter-sectoral labor shift, and economic growth in India |
| title_sort | agricultural productivity inter sectoral labor shift and economic growth in india |
| topic | structural adjustment economic growth degradation agricultural growth labour agriculture labour productivity productivity agricultural productivity |
| url | https://hdl.handle.net/10568/143524 |
| work_keys_str_mv | AT balajisj agriculturalproductivityintersectorallaborshiftandeconomicgrowthinindia AT babusureshchandra agriculturalproductivityintersectorallaborshiftandeconomicgrowthinindia |