1Department of Agricultural Economics and Extension, School of Agriculture, Lovely Professional University, Phagwara, Punjab, India
2Division of Agricultural Economics, ICAR-Indian Agricultural Research Institute, New Delhi, India
3Division of Agricultural Extension, ICAR-Indian Agricultural Research Institute, New Delhi, India
4Department of Agricultural Economics and Farm Management, Assam Agricultural University, Jorhat, Assam, India
*Corresponding author: aviplusavi@gmail.com
Online published on 27 October, 2025.
This study examines the economic impact of democratic protests on agriculture and local economies in Punjab, focusing on key variables such as agricultural yield, local GDP, and employment. Utilizing a sample of 400 farmers from protest-affected and non-affected districts, the analysis employs Difference-in-Differences (DiD) and Propensity Score Matching (PSM) methodologies. The results reveal that protests led to a significant reduction in agricultural yield, averaging -0.60 tons/ha (p < 0.01) for affected districts compared to their non-affected counterparts. Additionally, local GDP in protest-affected areas declined by approximately -50.0 million INR (p < 0.05), indicating the broader economic consequences of political unrest. Employment rates also suffered, with a statistically significant decline of about 9.5 percentage points (p < 0.01) in protest-affected districts relative to non-affected ones. The common support zone in the PSM analysis confirmed the robustness and reliability of these estimates. Overall, the study underscores the vulnerability of agricultural communities to political disruptions and highlights the urgent need for targeted policy interventions to safeguard rural livelihoods and enhance economic resilience during periods of civil unrest.
⓿ The study reveals significant negative impacts of democratic protests on agricultural productivity and local economic stability in Punjab.
⓿ It highlights the disparities in income and employment rates between farmers in protest-affected and non-affected districts.
⓿ The findings underscore the need for targeted policy interventions to support agricultural communities during periods of political unrest.
Agriculture, Economic Impact, Protests, Rural Economy
