Price and Non-Price Factors in Agricultural Investments

Price and Non-Price Factors in Agricultural Investments V N Misra P B R Hazell Introduction IN our paper [Mian and Hazeil 1996] we included an analysis of the determinants of private investment in Indian agriculture, which has generated considerable debate. Our results showed that while the domestic terms of trade and technological change (as represented by the spread of HYVs) were significantly and positively related to private capital formation, public capital formation was not a significant determining factor. This result challenged the much cherished assumption that public and private investment are complementary.