Abstract:
In this paper, an attempt was made to review the empirical evidence relating to the effect of new technology on income and its distribution in the rural areas of the developing countries. The purpose of the paper was to examine the popular myth that the new technology, due to its bias ness towards large landowners, would increase the existing inequality of income in the rural areas. The paper reviewed some of the important field level studies conducted in India, Pakistan and Bangladesh during the seventees, but found no conclusive evidence supporting this view. This controversy might have been originated from the error in measuring the effect of new technology on rural income and its distribution. Further studies in this line would help valid generalization of the hypothesis and strengthen the theory of rural development.
