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Watering the Seeds of the Rural Economy: Evidence from Groundwater Irrigation in India

Year: 2024

Type: article

Abstract: ABSTRACT This study explores the impact of private investment in groundwater extraction for irrigation on the spatial and sectoral distribution of rural economic activity in India. Exploiting a kink in access to groundwater, generated from an absolute technological constraint on the operational capacity of irrigation pumps with depth of the water table, there is evidence of a significant improvement in agricultural production accompanied with modest consumption gains. Groundwater extraction causes a substantial increase in population density, but has no effect on the employment rate or labor reallocation between sectors of the economy. Furthermore, irrigated agriculture appears to provide additional employment opportunities for waged labor from surrounding non-irrigated villages.

Source: The World Bank Economic Review

DOI: 10.1093/wber/lhae041

Authors: Camille Boudot-Reddy, André Butler

Institutions: Birkbeck, University of London, University of Cambridge

Language: English

Topic: Agricultural Economics and Practices

Subfield: General Agricultural and Biological Sciences

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Decent work and economic growth, Clean water and sanitation, No poverty, Industry, innovation and infrastructure, Zero hunger

Open Access status: hybrid

Estimated APC paid: $4,185