Nabi, Ijaz (1981) Rural factor markets in Pakistan. PhD thesis, University of Warwick.

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Abstract

Four important and inter-related issues in the economics of agriculture
in developing countries are production efficiency, tenancy, technological
innovation and rural-urban migration. These issues are examined in this
study by analysing the working of rural factor markets using empirical
evidence on selected farmers in four villages and an important sub-division
in Pakistans Punjab province.
The pattern of land holding in Pakistan suggests that land is very
unequally distributed. This observation is the basis for may proposals
of land reform. It has been argued that inequality in land distribution
is undesirable per se as well as because it leads to inefficiency in
agricultural production. Empirical evidence from the villages suggests
that an inverse relationship exists between farm size and productivity thus
lending support to the second part of the argument. Explanations in terms
of the working of rural land and labour markets are offered for the existence
of the relationship.
Tenancy is important in Pakistan. Its existence is explained in
terms of adjustments in factor endowments by landowners and landless
cultivators given that markets for labour and draught power operate
imperfectly. Different tenurial contracts imply different sets of incentives
that influence decisions regarding resource allocation on the farm. The
empirical evidence suggests that adjustments are made - such as devising
cost-sharing, input stipulation and supervision arrangements - to ensure
that different tenurial contracts are equally efficient.
It is argued that despite the apparent difficulties of access to 'green
revolution' technology inputs due to imperfections in their distribution and
scarcity of rural credit, small farms use inputs such as high yield variety
seeds and chemical fertilizers no less intensively compared to the large
farmers. The evidence suggests that new markets for factor services and
intricate but more accessible networks of fertilizer and seed distribution
may have developed to facilitate the use by small farmers.
The relationship between migration and rural credit markets is examined.
It is argued that migration may improve the credit ratings of households and
thus may facilitate borrowing in the rural credit market. Detailed comments
are also made on the role of other rural-end variables such as non-farm income,
mechanization, output per capita, education and available land per capita
in influencing the decision to migrate.
The underlying theme of the study is the analysis of operations in
rural factor markets. We analyse, carefully, interactions in these markets
and then examine some important aspects of policies in the light of our
analysis of the four issues.

Item Type:	Thesis or Dissertation (PhD)
Subjects:	H Social Sciences > HC Economic History and Conditions S Agriculture > S Agriculture (General)
Library of Congress Subject Headings (LCSH):	Agriculture -- Economic aspects -- Pakistan
Official Date:	January 1981
Dates:	Date Event January 1981 Submitted
Institution:	University of Warwick
Theses Department:	Department of Economics
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Stern, N. H. (Nicholas Herbert)
Sponsors:	Overseas Development Administration (R3487)
Extent:	xi, 358 p.
Language:	eng
URI:	http://wrap.warwick.ac.uk/id/eprint/50487

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