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economics of on-farm development - Institute for Social and ...

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he invariably undertakes OFD, even if it is in :1<br />

limited scale. The functi<strong>on</strong>al<br />

<strong>for</strong>m with the set <str<strong>on</strong>g>of</str<strong>on</strong>g> v:1riables appears to be :1 good fit as evident from the R<br />

square values as well other parameters estimated.<br />

Determinants <str<strong>on</strong>g>of</str<strong>on</strong>g> OFD: the Kallada Irrigati<strong>on</strong> Project<br />

The analytical model used <strong>for</strong> explaining the varIOUS factors determining<br />

adoptioll <str<strong>on</strong>g>of</str<strong>on</strong>g>OFD in the Kallada project is:<br />

Z = a + PIXI + Pl"( + p]X] + fJ4 X 4 + P5X5 +fJPX6 + p,DX, + fJsDXs + &<br />

\\'here:<br />

XI = HOLDSIZE (Holding size in acres)<br />

X2 = P ADCON ( % <str<strong>on</strong>g>of</str<strong>on</strong>g> paddy area c<strong>on</strong>verted into other wet<br />

Crops to total area)<br />

XJ = RUBS HARE (% area under rubber to total area)<br />

~ = G WEXT (Extent <str<strong>on</strong>g>of</str<strong>on</strong>g> groundwater recharge in meters)<br />

Xs = AGE (Age <str<strong>on</strong>g>of</str<strong>on</strong>g> the <strong>farm</strong>er in years)<br />

DXo = OCST ATUS (Occ.status = I if agriculture; 0 otherwise)<br />

DX7 = MCS (Availability <strong>for</strong> MCS network <strong>for</strong> irrigati<strong>on</strong>, I ifMCS<br />

effective, 0 otherwise)<br />

DXg = PUMP (Availability <str<strong>on</strong>g>of</str<strong>on</strong>g> pump set, I if available, 0 otherwise)<br />

E = Error term.<br />

An analysis <str<strong>on</strong>g>of</str<strong>on</strong>g> the inter-relati<strong>on</strong>ship between the variables used in the<br />

analysis is described in Appendix 7.1. The results <str<strong>on</strong>g>of</str<strong>on</strong>g> the regressi<strong>on</strong> results based<br />

<strong>on</strong> the above functi<strong>on</strong>al <strong>for</strong>m are summarised have been shown in table 7.10.<br />

Table 7.10: Determinants <str<strong>on</strong>g>of</str<strong>on</strong>g> OFD in Kallada project: Reeressi<strong>on</strong> results<br />

Explanatory variables Coefficients Std. Error T values<br />

C<strong>on</strong>stant 274.077 707.960 0.564··<br />

HOLDSIZE (X I) 0.367 5.452 5.915"<br />

PADCONV(X2) 0.172 2.196 1.112·<br />

RUBSHARE JX31 -0.112 1.493 -2.661"<br />

GWEXT(X41 0.279 5.038 2.095·<br />

AGE (X5) -0.185 11.746 -1.140·<br />

OCST A TUS (DX6) 0.206 270.531 1.260"<br />

MCS (DX7) 0.041 87.506 0.714"<br />

PUMPSET{DX8) 0.220 518.063 1.752·<br />

R square = 0.734 Adj. R2 - 0.719 . F value - 50.15 D-W stat. 1.755<br />

Note: • Significant at I % level; •• Significant at 5 per cent level.<br />

287

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