Farm productivity and rural poverty in India Datt, Gaurav; Ravallion, Martin

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Datt, Gaurav ; Ravallion, Martin
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Journal of Development Studies
Poverty -- Economic aspects; Agriculture; Rural poor -- Economic aspects
Armed with new data, we return to an old question from the pages of this journal: to what extent do India's rural poor share in agricultural growth? Combining data from 24 household sample surveys spanning 35 years with other sources, we estimate a model of the joint determination of consumption-poverty measures, agricultural wages, and food prices. We find that higher farm productivity brought both absolute and relative gains to poor rural households. A large share of the gains was via wages and prices, though these effects took time. The benefits to the poor were not confined to those near the poverty line.
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