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Do Macroeconomic Conditions Matter for Agriculture? The Indian Experience

Author

Listed:
  • Shashanka Bhide

    (Institute for social and Economic Change)

  • Meenakshi Rajeev
  • B.P. Vani

Abstract

Macroeconomic instability, characterised by high inflation, a fragile foreign exchange position, high rates of interest, increases uncertainty for any investor or producer and hence slows down economic growth. While this is generally accepted, the usual perception about the agricultural sector, particularly in India, is that it is immune to general macroeconomic shocks. In this paper, we intend to examine this perception formally using a vector auto regressive model. By studying the significance of macroeconomic conditions to the agricultural sector, we observe that the sector is not insulated from macroeconomic shocks.

Suggested Citation

  • Shashanka Bhide & Meenakshi Rajeev & B.P. Vani, 2005. "Do Macroeconomic Conditions Matter for Agriculture? The Indian Experience," Working Papers 162, Institute for Social and Economic Change, Bangalore.
    • Handle: RePEc:sch:wpaper:162
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    References listed on IDEAS

    as
    1. Rangarajan, C., 1982. "Agricultural growth and industrial performance in India:," Research reports 33, International Food Policy Research Institute (IFPRI).
    2. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    3. Pesaran, H. Hashem & Shin, Yongcheol, 1998. "Generalized impulse response analysis in linear multivariate models," Economics Letters, Elsevier, vol. 58(1), pages 17-29, January.
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    Cited by:

    1. Mathew, Merlin, 2021. "Impact of Macroeconomic Policies on Agricultural Performance in India: A Vector Auto Regression Approach," 2021 Conference, August 17-31, 2021, Virtual 315158, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Agricultural Growth; Macroeconomic instability;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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