1. Does input subsidy discourage public investment in Indian agriculture? Evidence from ARDL applications.
- Subjects
PUBLIC investments ,SUBSIDIES ,AGRICULTURE ,INFRASTRUCTURE (Economics) ,PUBLIC sector - Abstract
Public investment through its long term benefits is one of the significant contributors to agricultural growth in India. Despite the fact, the public sector investment in Indian agriculture declined over the years and the researchers have considered increasing input subsidy as the main cause of its decline. This paper tries to empirically examine the claim that input subsidy discourages public investment in Indian agriculture. Applying an "auto‐regressive distributive lag" (ARDL) model to time‐series data at the national level and panel‐ARDL model to sub‐national level panel data the study confirms that input subsidies do negatively affect public investment in Indian agriculture and results in discouraging the public sector investment. Therefore, the policy implication of the study suggests that for more efficient and sustainable growth in Indian agriculture, the need of the hour is the careful analysis of all these input subsidies and gradual removal of unproductive ones so as to make resources available for farm investment in social and physical infrastructure. This may help to accelerate and sustain the growth dynamics of Indian agriculture. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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