Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

R. Vijay ¹

Affiliations
1 University of Hyderabad, Hyderabad 500 046, IN

Abstract

A much-debated issue in agriculture is the form and nature of tenancy relations. An implicit opinion in the debate is the low turnover in the permanent transaction market for land and any sales that exist are to meet the cash needs of the households. In such a situation the resource adjustments in the market are in the temporary transaction market. But in a village economy which has witnessed a relatively high turnover in the market resource adjustments in the market takes place in both the markets. In such a village economy it would be interesting to see the form and nature of the lease market.

In the present paper, an attempt is made to study the lease market in an expanding economy. The source of growth in the economy was the provision of water through irrigation. This has led to in-migration of peasants from other areas wha had bought land as well as leased land. The nature af permanent transaction market for land was analyzed in an earlier paper where it was found that the seller's characteristics influence the price of land while the' buyer's characteristics influence the quantum of land leased. The objective of this paper is to examine whether the characteristics of agents, in which migrant-native character is one important variable, influences the quantum of land leased and the value of rental on land. Here it is seen that migrant-native character of the buyer influences the rental value of rental land but not the quantum of land. In addition the leasing out agent dominantly influences the lease market i.e., the supply side factors influence the lease market.

Full Text

     

R. Vijay ¹, Itishree Pattnaik ¹

Affiliations
1 University of Hyderabad, Central University (P.O.), Hyderabad 500046, IN

Abstract

Is the performance of the agricultural sector in Andhra Pradesh and Orissa smooth and continuous or any structural breaks are there? A shift in the growth regime would imply that at least one of the growth inducing factors (area, yield and cropping pattern) should also witness a regime change. The present paper attempts to identify the break points in the growth profile of the two states and also aims at accounting for the breaks in the performance of agricultural sector. Both the economies had two structural breaks in their performance during the post 1960’s period. Andhra Pradesh witnessed acceleration in growth of its agrarian economy over the phases while Orissa faced deceleration over the three phases. In Orissa, turning points in the Index number of area is an important factor for explaining turning points in agrarian performance. In case of Andhra Pradesh, the turning points in index number of yield and crop diversification play an important role in explaining turning points in overall growth performance and index number of land has limited role in explaining the turning points in the growth performance. Orissa’s agrarian economy continues to be in the ‘extensive’ phase with the importance of land under cultivation while Andhra Pradesh witnessed a shift to the phase of intensive cultivation with an increased dependence on yield.

Full Text

     

R. Vijay ¹

Affiliations
1 University of Hyderabad, IN

Abstract

In recent times interest in economics of development has once again gained in importance. The present set of literature is different when compared to the earlier set of literature on development economics. Much of the earlier literature was oriented towards policy with an emphasis on industrialization of countries. The agricultural sector was expected to respond to the signals of industry by supplying labour, raw material and wage goods needed for industrialization. Further, agricultural sector was supposed to absorb the output of industry either in the form of consumption or as input in agriCUlture. The industry-agriculture linkages are expected to pull the economy on a growth path with industry playing the role of engine of growth. The industrial sector was viewed as the engine of growth in the economy. However, the stimulus provided by industry did not always translate into growth in the aggregate economy, raising some important questions in development economics in general and development and growth of agricultural sector in particular. In this context, it is worth noting the contributions emerging from the sludy of contracls in the agricultural seclor, most notably the tenancy contracts , the labour contracts etc., within the discipline of what is being called 'Institutional Economics'. The present day models in development economics, which evolved in this context, have shifted the emphasis from policy prescription involving industrialization to understanding the role of agricultural sector and the forms of organization of production in agriculture.

Full Text

     

R. Vijay ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411 004., IN

Abstract

An interesting feature witnessed in Andhra Pradesh (AP) is the out-migration of peasants from their village of origin to areas with 'potential 'for assured water supply. These migrations introduced new crops into the area that they have migrated to.It is generally seen that initially the contracts between migrant and native are sale/purchase contracts. Tenaney contracts become more important after a point of time, and within this broad category there is a shift from fIXed rental contracts being more widely prevalent form to share tenaney over time. An exptontion of the above feature is attempted in this paper. The explanation of the heterogeneity in the contracts is based on differences in the information set on cultivation practices between migront and native. Here, we assume that the native learn the process of cultivation by viewing the migrant cultivate and in the process reducing the difference in information between the migrant and native. Here we postulate that the nature of contracts would depend on differences in information between migrant and native.

Full Text