Does rural infrastructure development affect agricultural productivity? Evidence from Assam, India

Abstract

Agricultural infrastructure can transform existing conventional agriculture into a modern, profitable and vibrant enterprise with remunerative profits. This study empirically investigated the relationship between rural infrastructure and agricultural productivity in the state of Assam. Rural infrastructure development indices were constructed by using regression analysis for availability and utilization indicators. The study results indicated that the availability of infrastructure in rural areas is contributing positively and significantly to agricultural productivity in the state. Infrastructure index, fertilizer consumption and technology also turn out to be positive determinants of agricultural productivity. Even though, availability of data limited the variables that could be considered, the study throws up evidence in support of huge investment in infrastructures in rural areas while at the same time call for measures to maximize the utilization of existing resources.