Article ID: CBB081420017

Overcoming the Egyptian cotton crisis in the interwar period: The role of irrigation, drainage, new seeds, and access to credit (2021)

unapi

After experiencing a period of spectacular growth during the late nineteenth century, the Egyptian cotton sector underwent a phase of stagnation, which was followed by a gradual and steady increase in output during the interwar period. Drawing on a new panel dataset at the province–year level, this article explores the determinants of the upturn in cotton output, running a horserace between credit, seed technology, and infrastructure. In order to address endogeneity concerns, an instrumental variable approach is adopted, using a modified version of Bartik's shift-share instrumental variable. Our results provide supporting evidence that peasants switched to a lower-yielding cotton variety as a response to changes in relative price. Moreover, our production function estimates show that two key factors had a positive impact on output growth: credit availability and the adoption of new cotton varieties.

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https://data.isiscb.org/isis/citation/CBB081420017/

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Authors & Contributors
Roberto Lorenzetti
Mottier, Nicole
Mitchell, Timothy
Obertreis, Julia
Primel, Casey
Andrés, Benny J.
Concepts
Agriculture
Agricultural technology
Cotton and cotton industry
Rural history
Agricultural economics
Farmers
Time Periods
20th century, early
19th century
20th century
21st century
Places
United States
Europe
Egypt
Canada
Mexico
Türkmenistan
Institutions
Bureau of Plant Industry (United States)
United States. Office of Indian Affairs
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