Population Pressure and Livelihood Dynamics: Panel Evidence from Bangladesh

32 Pages Posted: 27 Mar 2014

See all articles by Shahidur Rashid

Shahidur Rashid

International Food Policy Research Institute (IFPRI)

Nigussie Tefera

Joint Research Center of the European Commission

Solomon Lemma

International Food Policy Research Institute (IFPRI)

Mohammad Yunus

Bangladesh Institute of Development Studies (BIDS)

Date Written: February 2014

Abstract

Since the publication of the World Development Report 2008, two related strands of research have emerged — one on the validity of smallholder-led development strategy and the other on agricultural intensification under population pressure. The former casts doubt about the role of agriculture in economic development in smallholders dominated countries and the later provides evidence that are contrary to earlier findings on induced innovation theory.

Using a unique panel dataset, we examine whether these arguments are valid for Bangladesh — a densely populated country that has experienced significant growth in recent decades. The results suggest that (1) agriculture as a source of income declined significantly over the past two decades; (2) the operated farm size stopped declining in the late 1980s; and (3) that population density relates positively with a host of agricultural intensifications indicators with no evidence of threshold. Historical data on real prices, domestic surpluses, and other macroeconomic variables lend further support to these results. Thus, the paper concludes that small-holding was not a deterrent to structural changes in Bangladesh thus far and that agricultural intensification continued amid intense population pressure.

Keywords: Bangladesh, South Asia, Asia, agricultural development, innovation, development theory, panel data estimations, rural economy, induced innovation, agriculture led development

JEL Classification: Q12, C23, D01

Suggested Citation

Rashid, Shahidur and Tefera, Nigussie and Lemma, Solomon and Yunus, Mohammad, Population Pressure and Livelihood Dynamics: Panel Evidence from Bangladesh (February 2014). IFPRI Discussion Paper 01326, Available at SSRN: https://ssrn.com/abstract=2405719 or http://dx.doi.org/10.2139/ssrn.2405719

Shahidur Rashid (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

United States
202-862-6498 (Phone)
202-467-4439 (Fax)

HOME PAGE: http://www.ifpri.org/staffprofile/shahidur-rashid

Nigussie Tefera

Joint Research Center of the European Commission ( email )

Via E. Fermi 2749
1049
Belgium

Solomon Lemma

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Mohammad Yunus

Bangladesh Institute of Development Studies (BIDS) ( email )

E-17, Agargao, Shere Bangla Nagar
Dhaka, 1207
Bangladesh
+88-02-8181689 (Phone)

HOME PAGE: http://www.bids.org.bd

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
57
Abstract Views
655
rank
452,349
PlumX Metrics