Alison Campion

The long-run effects of agricultural productivity gains: Evidence from irrigation canals in India

Evidence from canals in India shows that labour mobility is a key channel to agricultural growth. This article shows that villages with access to canal water have persistently higher agricultural yields and higher population density for decades after canals are built. While the non-farm share of the economy is no different in canal and non-canal villages, nearby towns grew more quickly after canals were built. Structural transformation has taken place primarily through the migration of people to towns.