The Transition of Punjab Agriculture: A Choice of Technique Approach uri icon

abstract

  • The introduction of modern crop varieties in Punjab, India, led to rapid income growth. Adoption rate and level of the new varieties is examined using a choice-of-technique approach, in which techniques of production are identified by crop variety, season of growth, and method of production. Modeling the dynamic effects of technology, resource availability, and incentives reveals a consistent picture of the transition process. The results show the importance of incentives and availability of quasi-fixed inputs such as irrigation, fertilizers, and roads. By the late 1970s, the long-run aggregate supply elasticity was between 1.3-1.5.

publication date

  • 1992
  • 1992