Rural Infrastructure in Agriculture: Impact on Productivity and Diversification

Livelihood security of small farmers in developing countries depends on agriculture. But gains from green revolution technologies diminished in recent years. Apart from inputs, rural infrastructure plays an important role in productivity enhancement. This study analyzes rural infrastructure as one of the determinants of Total Factor Productivity (TFP) and diversification of crops in the Indian State of Tamil Nadu. The impacts of infrastructure on technical efficiency and private investment in agriculture were also studied. The results revealed that the investments in rural infrastructure like irrigation, rural markets and roads increased TFP in agriculture. The impact of infrastructure on crop diversification was not conclusive. While irrigation intensity,markets and commercial vehicles positively influenced crop diversification, road density did not have any significant influence on diversification. The important determinants of private investment in agriculture were non-farm income, area under irrigation and access to road. The book would be of interest to the students and researchers or anyone else working in the area of agriculture and rural development.