IDEAS home Printed from https://ideas.repec.org/a/ags/injagm/400086.html

India's competitive edge in global cotton trade: An analysis of comparative advantage and gravity model determinants

Author

Listed:
  • Adhikary, Mintu
  • Sarkar, Soumitra

Abstract

Cotton is one of the major cash crops of India and a major agricultural export of the country. In view of the economic importance of the crop as a key driver of rural livelihoods, this paper aims to assess competitiveness of India in global cotton trade by analysing its Revealed Comparative Advantage (RCA) and Lafay Index (LFI) for cotton exports. The study also attempts to determine the factors that influence the export of Indian Cotton to major importing countries using economic estimation of the Gravity model. The results of the RCA and LFI analysis reveal that India has a comparative advantage in cotton exports with respect to other major cotton exporters such as USA, Brazil, etc. Although USA is the largest cotton exporter, India has a better comparative advantage and specialisation, which indicates that there is much room for growth in cotton exports. The LFI further confirms India's export specialisation. The Gravity model estimation results highlight that cotton exports from India are determined by GDP of partner countries, GDP of India, physical distance and exchange rate.

Suggested Citation

  • Adhikary, Mintu & Sarkar, Soumitra, 2025. "India's competitive edge in global cotton trade: An analysis of comparative advantage and gravity model determinants," Indian Journal of Agricultural Marketing, Indian Society of Agricultural Marketing, vol. 39(2).
    • Handle: RePEc:ags:injagm:400086
    DOI: 10.22004/ag.econ.400086
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/400086/files/Indiacompetitive%20edge%20in%20global%20cotton%20trade.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.400086?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    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:ags:injagm:400086. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: AgEcon Search (email available below). General contact details of provider: https://agrilmktg.in/ .

    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.