IDEAS home Printed from https://ideas.repec.org/a/dse/indecr/v40y2005i1p65-92.html
   My bibliography  Save this article

Terms of Trade and Supply Response of Indian Agriculture: Analysis in Cointegration Framework

Author

Listed:
  • Surajit Deb

    (Ram Lal Anand College (Evening), University of Delhi, Benite Zuarez Road, New Delhi 110021, India)

Abstract

This paper examines the presence of stochastic trend in various domestic terms of trade (TOT) series in India. Results suggest that underlying data generating processes of TOT are non-stationary. Subsequently, we investigate the presence of long-run relationship(s) in the agricultural supply response model through cointegration analysis. The error correction estimates suggest that short-run output adjustments in agriculture are not related to TOT changes in a causal manner. However, short-run deviations in TOT create error-correction in the long-term output adjustments through changes in technology (irrigation). This may imply that agricultural growth can respond better if price incentives are combined with investments in irrigation.

Suggested Citation

  • Surajit Deb, 2005. "Terms of Trade and Supply Response of Indian Agriculture: Analysis in Cointegration Framework," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 40(1), pages 65-92, January.
    • Handle: RePEc:dse:indecr:v:40:y:2005:i:1:p:65-92
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Bingxin Yu & Shenggen Fan, 2011. "Rice production response in Cambodia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 437-450, May.
    2. Amey Sapre, 2014. "Madhya Pradesh: Does Agriculture Determine the State’s Growth Trajectory?," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(1), pages 39-57, February.

    More about this item

    Keywords

    Domestic terms of trade; Agricultural supply response; Unit root; Cointegration;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

    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:dse:indecr:v:40:y:2005:i:1:p:65-92. 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: Pami Dua (email available below). General contact details of provider: https://edirc.repec.org/data/deudein.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.