Crop Yield Convergence across Districts in India's Poorest State
Bihar, India's poorest state, witnessed impressive yield growth in each of its three principal crops over 2005-17. This paper examines whether a convergence in district yields accompanied the improvement in yields at the state level, thereby r...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/990781595870632735/Crop-Yield-Convergence-across-Districts-in-Indias-Poorest-State http://hdl.handle.net/10986/34257 |
| Summary: | Bihar, India's poorest state,
witnessed impressive yield growth in each of its three
principal crops over 2005-17. This paper examines whether a
convergence in district yields accompanied the improvement
in yields at the state level, thereby reducing regional
inequalities in land productivity. The convergence test
allows the idiosyncratic element of productivity to be
time-varying, thus allowing yields to diverge in some
interim phases. Rice yields across districts appear to be
converging to a common level, while maize yields have
diverged over the same period. However, the sub-period
analysis shows a trend of divergence for both crops going
forward. In contrast, wheat yields seem to be converging to
a common level recently, although the convergence for the
entire period is weak. The analysis also identifies district
clubs, which are converging to similar steady states. The
club classification transcends agro-climatic boundaries,
indicating a need for policy action to aid yield growth in
lagging districts. Finally, there is no evidence that the
divergence in yields was driven by a divergence in credit
allocation, highlighting the limitations of a macro
credit-driven policy. Credit supply might not be enough when
there are structural snags in the availability of direct
agricultural inputs. |
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