@article{Alauddin:172031,
      recid = {172031},
      author = {Alauddin, Mohammad and Tisdell, Clem},
      title = {Market Analysis, Technical Change and Income Distribution  in Semi-Subsistence Agriculture: the Case of Bangladesh},
      journal = {Agricultural Economics: The Journal of the International  Association of Agricultural Economists},
      address = {1986},
      number = {968-2016-75126},
      pages = {18},
      year = {1986},
      abstract = {For the first time, the model developed by Hayami and  Herdt is applied to
determine gains from modern varieties  of rice in Bangladesh and the distribution
of these gains  between consumers and producers. The results suggest that  consumers'
surplus is much greater than it would have been  had the high yielding
crop varieties ( HYVs) not been  introduced. By keeping the real price lower than
it would  have been otherwise, the modern varieties have tended to be  income
equalizing for urban consumers. The Hayami-Herdt  partial model even suggests
that, given the relatively  inelastic demand for rice in Bangladesh, the real  cash
income of producers has risen slightly as a result of  these new technologies. In
reality, however, the impact of  these changes on incomes of farmers and the
distribution of  income between those involved in production is more  complex. It
is suggested that if a less partial view is  taken and if account is taken of lower
cost of obtaining  home-consumed produce, the increase in income may be  greater.
In any event, there are dangers in using such a  partial model to predict the
developmental consequences of  technological changes affecting a staple crop,  and
attention needs also to be given to the possibility  that the supply curve may not
have the simple form and  pivot in the way supposed by Hayami and Herdt. While
the  Hayami-Herdt model is simple to apply, it is best used as a  first approximation
or starting point rather than a final  solution. It ignores a number of
criteria that could be  important in assessing new agricultural technologies,  such
as their impact on the variability of benefits to  producers and consumers and
their consequences for  sustainability of production. Furthermore, the  Hay-ami-Herdt model does not deal specifically with changes  in factor shares in farm
production. Nor does it consider  the impact on income distribution of the ownership
and  control of critical input like irrigation and imperfection  in the rural
credit market. It is pointed out in our paper  that the adoption of HYVs has been
associated with  important variations in factor shares in Bangladeshi rice  production.
Analysis of available farm level data indicates  that the relative share of
labour has fallen, suggesting an  uneven distribution of gains from technological
changes  between the owners of non-labour resources and those of  labour resources.
However, the absolute share of labour has  increased, and it seems that rural
employment has risen as  result of the new technologies.},
      url = {http://ageconsearch.umn.edu/record/172031},
      doi = {https://doi.org/10.22004/ag.econ.172031},
}