Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/180657
Authors: 
Chatterjee, Somdeep
Year of Publication: 
2018
Series/Report no.: 
Economics Discussion Papers 2018-56
Abstract: 
In a developing economy, the availability of storage infrastructure is considered essential for two purposes; the reduction of post-harvest losses resulting in food shortage, and allowing for gains from inter-temporal trade due to potential arbitrage opportunities arising out of volatility in food grain prices. This paper provides empirical evidence on a lesser studied impact of storage infrastructure, viz, agricultural yield. The author exploits potentially exogenous variation generated by the intensity of access to a capital investment subsidy program for construction and renovation of rural godowns in India to identify causal effects of better storage on yield. He finds that the program led to an increase in rice yield by 0.3 tons per hectare, approximately a 20% increase compared to the baseline. A potential mediating channel for such an effect would be reduced storage costs facilitating better investments in productive inputs. As supportive evidence, the author finds that fertilizer consumption increased by 21% in response to the intervention.
Subjects: 
storage
yield
fertilizer consumption
Grameen Bhandaran Yojana
JEL: 
Q12
Q18
O12
O13
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
376.68 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.