Dynamics of agricultural wage and rice price in Bangladesh: a re-examination

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 experien...

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Main Author: Rashid, Shahidur
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2002
Subjects:
Online Access:https://hdl.handle.net/10568/155757
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author Rashid, Shahidur
author_browse Rashid, Shahidur
author_facet Rashid, Shahidur
author_sort Rashid, Shahidur
collection Repository of Agricultural Research Outputs (CGSpace)
description 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.
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spelling CGSpace1557572025-11-06T07:22:09Z Dynamics of agricultural wage and rice price in Bangladesh: a re-examination Rashid, Shahidur agricultural productivity rural poverty rice prices 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. 2002 2024-10-24T12:42:31Z 2024-10-24T12:42:31Z Working Paper https://hdl.handle.net/10568/155757 en Open Access application/pdf International Food Policy Research Institute Rashid, Shahidur. 2002. Dynamics of agricultural wage and rice price in Bangladesh: a re-examination. MTID Discussion Paper 44. https://hdl.handle.net/10568/155757
spellingShingle agricultural productivity
rural poverty
rice
prices
Rashid, Shahidur
Dynamics of agricultural wage and rice price in Bangladesh: a re-examination
title Dynamics of agricultural wage and rice price in Bangladesh: a re-examination
title_full Dynamics of agricultural wage and rice price in Bangladesh: a re-examination
title_fullStr Dynamics of agricultural wage and rice price in Bangladesh: a re-examination
title_full_unstemmed Dynamics of agricultural wage and rice price in Bangladesh: a re-examination
title_short Dynamics of agricultural wage and rice price in Bangladesh: a re-examination
title_sort dynamics of agricultural wage and rice price in bangladesh a re examination
topic agricultural productivity
rural poverty
rice
prices
url https://hdl.handle.net/10568/155757
work_keys_str_mv AT rashidshahidur dynamicsofagriculturalwageandricepriceinbangladeshareexamination