2008
DOI: 10.1111/j.1574-0862.2008.00328.x
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Investment, subsidies, and pro‐poor growth in rural India

Abstract: This article reviews the trends in government subsidies and investments in and for Indian agriculture; develops a conceptual framework and a model to assess the impact of various subsidies and investments on agricultural growth and poverty reduction; and presents reform options with regard to re-prioritizing government spending. Subsidies in credit, fertilizer, and irrigation have been crucial for small farmers to adopt new technologies particularly during the initial stage of the green revolution in the late … Show more

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Cited by 241 publications
(149 citation statements)
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“…If this is not possible, economic costbenefit analysis suggests that alternative types of investment, for example in research and extension and in rural roads, have yielded high returns in poor agrarian economies in the past (see e.g. Fan et al, 2004Fan et al, , 2007Economist Intelligence Unit, 2008). There are, however, a number of difficulties in choosing between these different types of investment using a simple comparison of the rates of return.…”
Section: The Agricultural Input Subsidy Programme: Outcomes and Impactsmentioning
confidence: 99%
“…If this is not possible, economic costbenefit analysis suggests that alternative types of investment, for example in research and extension and in rural roads, have yielded high returns in poor agrarian economies in the past (see e.g. Fan et al, 2004Fan et al, , 2007Economist Intelligence Unit, 2008). There are, however, a number of difficulties in choosing between these different types of investment using a simple comparison of the rates of return.…”
Section: The Agricultural Input Subsidy Programme: Outcomes and Impactsmentioning
confidence: 99%
“…In the literature, is is clearly acknowledged that higher agricultural productivity is crucial to raise income in rural agricultural areas and for the poorest of rural households Datt, 1996, 1998a;Timmer, 1997Timmer, , 2004Suryahadi and Sumarto, 2003;Fan et al, 2004Fan et al, , 2008. The literature does not distinguish carefully between the type of productivity improvements, differentiating between productivity improvements for the same crops versus shifts to higher productivity crops, an issue that deserves closer attention.…”
Section: Introductionmentioning
confidence: 99%
“…The main concern is market distortions and inefficiency of the allocation of resources. Fan et al, (2008) find that agricultural input and output subsidies have proved to be unproductive, financially unsustainable, environmentally unfriendly in recent years, and contributed to increased inequality among rural Indian states. Furthermore, López (2004) focuses on structure of public expenditures as an important factor of economic development.…”
Section: Related Literaturementioning
confidence: 99%
“…Previous literature shows that public expenditure on agriculture allocated towards the provision of public goods has greater returns than public expenditure allocated towards the provision of private goods (see Godtland et al, 2004;Fan et al, 2008;Fang and Norman (2014)). …”
Section: Introductionmentioning
confidence: 99%