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WTO and Indian Chilli export: Issues of growth, instability and competitiveness

Author

Listed:
  • Balaji
  • Paltasingh, K.R.

Abstract

The paper tries to analyze the growth performance of Indian chilli export and instability in production as well as its export performance. Analysis of growth rate and instability for two periods, i.e., pre WTO (1980–1994) and Post WTO (1995–2009) reveals that trade liberalisation augmented production and export of chilli and its products with lower instability. The results of export performance ratio (EPR) and reveald symmetric comparative advantage (RSCA) show that India is not competitive in export of both dry chilli and green chilli. However, the trend is slightly getting reversed in later periods. But, the export of Indian chilli is facing a steep competition from China. The factors like domestic price, exchange rate and world export price along with lagged domestic production significantly influence export preference of Indian chilli. Keeping these in view the paper finally concludes with some policy suggestions to enhance the export competitiveness and domestic production of chilli.

Suggested Citation

  • Balaji & Paltasingh, K.R., 2014. "WTO and Indian Chilli export: Issues of growth, instability and competitiveness," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 28(2).
    • Handle: RePEc:ags:injagm:399487
    DOI: 10.22004/ag.econ.399487
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    References listed on IDEAS

    as
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    5. Keld Laursen, 1998. "Revealed Comparative Advantage and the Alternatives as Measures of International Specialisation," DRUID Working Papers 98-30, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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