Agrarian Distress under Global Integration: Impoverishing Growth and "Perverse" Supply Response

Author(s):  
J. Mohan Rao ◽  
Vamsi Vakulabharanam

- This paper aims to explain theoretically two apparently paradoxical phenomena witnessed in the Telangana region of South India between 1985 and 2000. First, despite the rapid growth of real agricultural output during this period, per-capita consumption of the majority of the agricultural population declined during the 1990s (when agricultural liberalization policies were introduced in India) after steadily rising during the 1980s. Second, non-food crop supply elasticities, which had been positive, turned "perversely" negative during the 1990s. Employing a model of a peasant economy with an effort supply function originally proposed by Leibenstein, we explain the two puzzles in terms of the interplay between the conditions of global integration (falling value-added prices) and the nature of local credit markets and institutions (including the practice of requiring collateral in the form of non-food crops).EconLit Classification: P160, O100, F150, Q100Keywords: Capitalist Systems, Political Economy, Economic Development, Economic Integration, Sustainable DevelopmentParole chiave: Sistemi capitalistici, Politica economica, Sviluppo economico, Integrazione economica, Sviluppo sostenibile

2018 ◽  
pp. 71-91 ◽  
Author(s):  
I. L. Lyubimov ◽  
M. V. Lysyuk ◽  
M. A. Gvozdeva

Well-established results indicate that export diversification might be a better growth strategy for an emerging economy as long as its GDP per capita level is smaller than an empirically defined threshold. As average incomes in Russian regions are likely to be far below the threshold, it might be important to estimate their diversification potential. The paper discusses the Atlas of economic complexity for Russian regions created to visualize regional export baskets, to estimate their complexity and evaluate regional export potential. The paper’s results are consistent with previous findings: the complexity of export is substantially higher and diversification potential is larger in western and central regions of Russia. Their export potential might become larger if western and central regions, first, try to join global value added chains and second, cooperate and develop joint diversification strategies. Northern and eastern regions are by contrast much less complex and their diversification potential is small.


Author(s):  
J. Misfeld ◽  
J. Timm

AbstractOn the basis of numerous research results and data on the development of nicotine and condensate contents of German cigarettes, of their respective shares in the market, the smoked length of cigarettes, and of the pro capita consumption of cigarettes in the Federal Republic of Germany, an estimate has been prepared on the yearly pro capita consumption of smoke condensate and nicotine in the Federal Republic covering the years 1961-1970. The values for 1961 amount to 40.2 g of smoke condensate (crude) and to 2.04 g of nicotine. The values for 1970 are found to be only 29.4 g and 1.63 g respectively. That means that the consumption of smoke condensate and nicotine in the Federal Republic has decreased during the last ten years. The share of smokers having remained almost the same, the consumption of smoke condensate and nicotine per smoker is, as well, found to have decreased by about 27 % and 20 % respectively during the years between 1961 and 1970 despite an increased cigarette consumption.


Urban Studies ◽  
2019 ◽  
Vol 57 (4) ◽  
pp. 806-826
Author(s):  
Fan Fan ◽  
Ming Li ◽  
Ran Tao ◽  
Dali Yang

China has adopted a transfer-based fiscal decentralisation scheme since the mid-1990s. In the 1994 tax sharing reform, the central government significantly raised its share of government revenue vis-à-vis local governments by taking most of the newly created value-added tax on manufacturing. One aim for the adoption of the transfer-based fiscal scheme was to channel more funds to less developed regions and rural areas, and to alleviate growing interregional inequality and urban–rural income disparity. In 2002 and 2003 the Chinese central government further grabbed 50% and 60%, respectively, of the income taxes previously assigned only to local governments while providing more fiscal transfers to the country’s poor regions and the countryside. Utilising the 2002–2003 change in China’s central–local tax sharing regime as an exogenous policy shock, we employ a Simulated Instrumental Variable approach to causally evaluate the effects of the policy shock on growth, interregional inequality and urban–rural disparity. We find the lower local tax share dis-incentivised local governments and led to lower growth. Although higher central transfers helped to reduce interregional inequalities in per capita GDP and per capita income, the equalising effects were only present for urban incomes. We argue that transfer-based decentralisation without bottom-up accountability was detrimental to economic growth and had limited impact on income redistribution.


2016 ◽  
Vol 17 (2) ◽  
pp. 472-479 ◽  
Author(s):  
Jiefeng Kang ◽  
Jianyi Lin ◽  
Shenghui Cui ◽  
Xiangyang Li

Providing a comprehensive insight, water footprint (WF) is widely used to analyze and address water-use issues. In this study, a hybrid of bottom-up and top-down methods is applied to calculate, from production and consumption perspectives, the WF for Xiamen city from 2001 to 2012. Results show that the average production WF of Xiamen was 881.75 Mm3/year and remained relatively stable during the study period, while the consumption WF of Xiamen increased from 979.56 Mm3/year to 1,664.97 Mm3/year over the study period. Xiamen thus became a net importer of virtual water since 2001. Livestock was the largest contributor to the total WF from both production and consumption perspectives; it was followed by crops, industry, household use, and commerce. The efficiency of the production WF has increased in Xiamen, and its per capita consumption WF was relatively low. The city faces continuing growth in its consumption WF, so more attention should be paid to improving local irrigation, reducing food waste, and importing water-intensive agricultural products.


The present study, dealing with the inequality in consumption of the rural households across the different regions, is based upon the primary data of the Punjab state. The analysis showed that Malwa excelled other two regions in the per capita consumption. The highest average propensity to consume was observed for Doaba, and it was the lowest for Malwa. All the rural households except large farm of all the three regions and medium farm households of Malwa and Majha were in deficit. Considering all households together, the inequality of household consumption expenditure was relatively high in all three regions, with the same being highest in Majha, followed by Malwa and Doaba. The concentration of consumption expenditure among the land-owning households was greater than the landless households.


2012 ◽  
Vol 102 (4) ◽  
pp. 1206-1240 ◽  
Author(s):  
Vivi Alatas ◽  
Abhijit Banerjee ◽  
Rema Hanna ◽  
Benjamin A Olken ◽  
Julia Tobias

This paper reports an experiment in 640 Indonesian villages on three approaches to target the poor: proxy means tests (PMT), where assets are used to predict consumption; community targeting, where villagers rank everyone from richest to poorest; and a hybrid. Defining poverty based on PPP$2 per capita consumption, community targeting and the hybrid perform somewhat worse in identifying the poor than PMT, though not by enough to significantly affect poverty outcomes for a typical program. Elite capture does not explain these results. Instead, communities appear to apply a different concept of poverty. Consistent with this finding, community targeting results in higher satisfaction. (JEL C93, I32, I38, O12, O15, O18, R23)


2021 ◽  
Vol 13 (22) ◽  
pp. 12361
Author(s):  
Abdul Rauf ◽  
Ilhan Ozturk ◽  
Fayyaz Ahmad ◽  
Khurram Shehzad ◽  
Abbas Ali Chandiao ◽  
...  

China is performing a dominant role in the world’s economic growth, but it has mainly been the commencement of the Belt and Road Initiative (BRI) that has significantly increased its importance around the world. Recently, the emergence of the tourism industry has been considered as an alternative for sustainable economic and ecological development, which is ironic. Although China is promoting tourism in various regions under “The New Normal” phase, it needs to proactively address the challenges of dismantling, for the environment. The fundamental objective of the current study is to determine the long-term affiliation between tourism development, economic progress, transportation, energy consumption, value added hotel catering services, and environmental degradation (CO2) for a panel of thirty (30) provinces of China over the period of 1995–2017. Primarily, we applied the CD test for investigating cross dependence; subsequently, conventional and CD based panel unit root tests (CIPS) were carried out to deal with the puzzle of the stationarity of the panel series. The results of the dynamics panel, DOLS, FMOLS, and PMG, indicated that transportation, energy consumption, and value added hotel and catering services have a strong positive association with carbon emission, but tourism development has mixed links with ecological degradation. Additionally, the causative based test revealed the bidirectional association of tourism development, transportation, economic progress, and energy consumption with environmental quality. The retrieved estimates conferred a few guidelines, concerning the presence of BRI projects, for the Chinese administration at the provincial and national level: initiating the renewable based energy projects and possibly wishing to decrease the use of fossil fuel based energy in the industry, transportation, and hotels and catering sectors. Furthermore, the prevalence of green investment in provinces may motivate economic progress and tourism development, without worsening the atmosphere.


2021 ◽  
Vol 13 (11) ◽  
pp. 115
Author(s):  
Cesar R. Sobrino

In this study, we use the co-movements approach to examine the role of permanent (common trend) and temporary (common cycle) shocks on per capita output, per capita consumption, and per capita investment in Peru, a small open commodity-based economy. Using quarterly data from 1993: Q1 to 2019: Q1, the effects of the temporary shocks are short-lived, and, on average, are a minor source of the variations of macro time series, over 10 quarters. This evidence suggests that the main source of per capita output and per capita consumption variations is the common trend shock which must be related to the 1990s reforms. Moreover, per capita output and per capita consumption are less responsive to unfavorable (favorable) common cycle shocks than per capita investment is. This outcome indicates that per capita investment has a much more volatile cycle than per capita private output and per capita consumption which is consistent with a previous empirical work.


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