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The Debate on Agriculture-Industry Terms of Trade in India

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Author Info
Surajit Deb (Ram Lal Anand College (Evening))
Abstract

In this paper, we focus on the vast literature that involved analysis of the agriculture-industry terms of trade in India. We first state the key policy issues that are found to be associated with changes in terms of trade variable, and subsequently discuss specific issues concerning the empirical estimation of agricultural terms of trade. We find that the barter terms of trade measure may not only be subject to an aggregation error associated with the index number construction, but is also exposed to the aggregation problems of empirical estimation. We also undertake a set of statistical tests to examine the difference among various agricultural net barter terms of trade series on India. The results indicate that in spite of the methodological differences, the alternate series reflect similar attributes over comparable time periods.

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Paper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 109.

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Length: 50 pages
Date of creation: Nov 2002
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Handle: RePEc:cde:cdewps:109

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Related research
Keywords: agricultural linkage; price policy; index number and aggregation; non-parametric methods.;

Find related papers by JEL classification:
Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Rangarajan, C., 1982. "Agricultural growth and industrial performance in India:," Research reports 33, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Ghose, A K, 1989. "Rural Poverty and Relative Prices in India," Cambridge Journal of Economics, Oxford University Press, vol. 13(2), pages 307-31, June.
  3. Schiff, Maurice & Montenegro, Claudio E., 1995. "Aggregate agricultural supply response in developing countries : a survey of selected issues," Policy Research Working Paper Series 1485, The World Bank. [Downloadable!]
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  4. Datt, Gaurav & Ravallion, Martin, 1996. "Macroeconomic crises and poverty monitoring : a case study for India," Policy Research Working Paper Series 1685, The World Bank. [Downloadable!]
    Other versions:
  5. Pesaran, M Hashem & Pierse, Richard G & Kumar, Mohan S, 1989. "Econometric Analysis of Aggregation in the Context of Linear Prediction Models," Econometrica, Econometric Society, vol. 57(4), pages 861-88, July. [Downloadable!] (restricted)
    Other versions:
  6. T. Palanivel, 1995. "Aggregate Supply Responses in Indian Agriculture: Some Empirical Evidence and Policy Implications," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 30(2), pages 251-263, July.
  7. Stoker, Thomas M, 1993. "Empirical Approaches to the Problem of Aggregation Over Individuals," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1827-74, December. [Downloadable!] (restricted)
  8. Rao, J. Mohan, 1989. "Getting agricultural prices right," Food Policy, Elsevier, vol. 14(1), pages 28-42, February. [Downloadable!] (restricted)
  9. Lee, Kevin C & Pesaran, M Hashem & Pierse, Richard G, 1990. "Testing for Aggregation Bias in Linear Models," Economic Journal, Royal Economic Society, vol. 100(400), pages 137-50, Supplemen. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Surajit Deb, 2002. "Terms of Trade in a Multi-Sectoral Framework: Analysis for All-India and States," Working papers 112, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
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