IDEAS home Printed from https://ideas.repec.org/p/ind/igiwpp/2006-011.html
   My bibliography  Save this paper

Reforms in Indian agro-processing and agriculture sectors in the context of unilateral and multilateral trade agreements

Author

Listed:
  • A. Ganesh-Kumar

    (Indira Gandhi Institute of Development Research)

  • Manoj K. Panda

    (Indira Gandhi Institute of Development Research)

  • Mary E. Burfisher

    (Economic Research Services, United States Department of Agriculture)

Abstract

In this paper, we explore the potential impacts of trade and investment-related policy reforms on India's agro-processing sector. We consider the direct effects of policy reforms within the processing sector, and the indirect effects on agro-processing of policy reforms in the primary agriculture sector, in the Indian economy as a whole, and in a multilateral framework. Towards this, we develop a 22-sector, 16-region version of the GTAP computable general equilibrium (CGE), global model for our analysis. We find that trade and investment-related reforms in agro-processing together can help the sector to grow. Policy reforms that stimulate investment and help to improve productivity will be crucial in offsetting the contractionary pressures of trade reform alone on the production of processed agricultural products. We also find that indirect effects on agroprocessing from India's policy reforms in other sectors are more important than reforms in agro-processing itself. Our findings argue for an economy-wide perspective when targeting reform or development of the agro-processing sector in India. Compared to trade reform, comprehensive domestic reforms in the agro-processing and agriculture sectors relating to investment are critical for achieving growth in agro-processing. However, while the impacts of trade reform per se seem to be small, trade reform - by ushering in a higher degree of competition - could itself be a stimulus for investment and productivity gains in India. At present, unilateral reforms, especially those that improve productivity in agroprocessing and in primary agriculture, are more important to agro-processing than multilateral trade reforms. Nevertheless, our findings also suggest the importance of pursuing a domestic reform agenda within a multilateral trading strategy that can accommodate the expected economic growth of India and its future role in global markets, with general equilibrium effects on agro-processing.

Suggested Citation

  • A. Ganesh-Kumar & Manoj K. Panda & Mary E. Burfisher, 2006. "Reforms in Indian agro-processing and agriculture sectors in the context of unilateral and multilateral trade agreements," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2006-011, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2006-011
    as

    Download full text from publisher

    File URL: http://www.igidr.ac.in/pdf/publication/WP-2006-011.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Martin, Will & Mitra, Devashish, 1999. "Productivity growth and convergence in agriculture and manufacturing," Policy Research Working Paper Series 2171, The World Bank.
    2. Sanjaya Acharya, 2015. "Trade Liberalization," Palgrave Macmillan Books, in: Jens Hölscher & Horst Tomann (ed.), Palgrave Dictionary of Emerging Markets and Transition Economics, chapter 20, pages 393-412, Palgrave Macmillan.
    3. Parikh, Kirit S. & Narayana, N. S. S. & Panda, Manoj & Kumar, A. Ganesh, 1997. "Agricultural trade liberalization: growth, welfare and large country effects," Agricultural Economics, Blackwell, vol. 17(1), pages 1-20, October.
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    5. Hewings, Geoffrey J. D. & Fonseca, Manuel & Guilhoto, Joaquim & Sonis, Michael, 1989. "Key sectors and structural change in the Brazilian economy: A comparison of alternative approaches and their policy implications," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 67-90.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manoj Panda & A. Ganesh-Kumar, 2008. "Trade Liberalization, Poverty and Food Security in India," Trade Working Papers 22410, East Asian Bureau of Economic Research.
    2. A. Ganesh-Kumar & Ashok Gulati & Ralph Cummings, Jr, 2008. "Reforming foodgrains management: Achieving food security with cost-effectiveness," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-027, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. McDonald, Scott & Thierfelder, Karen & Robinson, Sherman, 2008. "Leveling the Global Playing Field: Taxing Energy Use and Carbon Emissions," Conference papers 331766, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Manoj K. Panda & A. Ganesh Kumar, 2008. "Trade liberalization, poverty and food security in India abstract: This paper attempts to assess the impact of trade," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-013, Indira Gandhi Institute of Development Research, Mumbai, India.
    5. Shutes, Lindsay & Ganesh-Kumar, Anand & Meijerink, Gerdien W., 2012. "Fluctuating staple prices and household poverty in India," MPRA Paper 40982, University Library of Munich, Germany.
    6. Sandra Polaski et al, 2008. "Policy dilemmas in India: The Impact of changes in agricultural prices on rural and urban poverty," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-012, Indira Gandhi Institute of Development Research, Mumbai, India.
    7. Landes, Maurice R. & Burfisher, Mary E., 2009. "Growth and Equity Effects of Agricultural Marketing Efficiency Gains in India," Economic Research Report 55959, United States Department of Agriculture, Economic Research Service.
    8. Paltsev, Sergey & Karplus, Valerie & Reilly, John, 2008. "Incorporating Household Transportation Sector into a General Economic Equilibrium Model: Implications for Climate Policy," Conference papers 331700, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2008. "Dairy Trq Liberalization: Contrasting Bilateral and Most Favored Nation Reform Options," Conference papers 331733, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramilison, Eric Norbert, 2006. "Will Madagascar benefit from the South African market opening to SADC goods ?," Conference papers 331461, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Kym Anderson & Anna Strutt, 2012. "Agriculture and Food Security in Asia by 2030," Macroeconomics Working Papers 23309, East Asian Bureau of Economic Research.
    3. Anderson, Kym & Jha, Shikha & Nelgen, Signe & Strutt, Anna, 2012. "Reexamining Policies for Food Security," ADB Economics Working Paper Series 301, Asian Development Bank.
    4. Kym Anderson, 2005. "Agricultural trade reform and poverty reduction in developing countries," Chapters, in: Sisira Jayasuriya (ed.), Trade Policy Reforms and Development, chapter 9, Edward Elgar Publishing.
    5. Lee, Hiro & Owen, Robert F. & van der Mensbrugghe, Dominique, 2009. "Regional integration in Asia and its effects on the EU and North America," Journal of Asian Economics, Elsevier, vol. 20(3), pages 240-254, May.
    6. Péter Szálteleki & Gabriella Bánhegyi & Zsuzsanna Bacsi, 2024. "The Impacts of CAP Subsidies on the Financial Risk and Resilience of Hungarian Farms, 2014–2021," Risks, MDPI, vol. 12(2), pages 1-36, February.
    7. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    8. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    9. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    10. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    11. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    12. Adams, Philip D., 2008. "Insurance against Catastrophic Climate Change: How Much Will an Emissions Trading Scheme Cost Australia?," Conference papers 331770, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    14. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.
    15. Dhoubhadel, Sunil P. & Taheripour, Farzad & Stockton, Mathew C., 2016. "Livestock Demand, Global Land Use, and Induced Greenhouse Gas Emissions," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235271, Agricultural and Applied Economics Association.
    16. Federico Perali & Stefania Lovo, 2009. "Counterfactual analysis using a regional dynamic general equilibrium model with historical calibration," Working Papers 58/2009, University of Verona, Department of Economics.
    17. Mai, Yinhua, 2008. "Removing border protection on wheat and rice: effects on rural income and food self-sufficiency in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-19.
    18. Lucian Cernat & Sam Laird & Alessandro Turrini, 2003. "How Important are Market Access Issues for Developing Countries in the Doha Agenda?," International Trade 0302004, University Library of Munich, Germany.
    19. Palatnik, Ruslana R. & Kan, Iddo & Rapaport-Rom, Mickey & Ghermandi, Andrea & Eboli, Fabio & Shechter, Mordechai, 2011. "Land transformation analysis and application," Conference papers 332155, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Hareau, Guy Gaston & Norton, George W. & Mills, Bradford F. & Peterson, Everett B., 2004. "Potential Benefits Of Transgenic Rice In Asia: A General Equilibrium Approach," 2004 Annual meeting, August 1-4, Denver, CO 20334, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Agriculture; Agro-processing; Trade agreements; CGE models;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:igiwpp:2006-011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shamprasad M. Pujar (email available below). General contact details of provider: https://edirc.repec.org/data/igidrin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.