Weather Risk and Cropping Intensity: A Non-Stationary and Dynamic Panel Modeling Approach

Climatic conditions and weather play an important role in production agriculture. Using district level panels for 42 years from India and dynamic panel estimation procedure we estimate the impact of weather risk on cropping intensity. Our non-stationary and dynamic panel model results suggest that the impact of weather risk on cropping intensity, in rural India, is negative on short run, while it is positive on long run. Additionally, we found a negative effect of education on cropping intensity. Finally, in the long run, our results indicate positive effects of high yielding variety production and share of irrigated land on cropping intensity.