IDEAS home Printed from
   My bibliography  Save this article

Agricultural Trade and its Linkages to Macroeconomic Variables in the Indian Economy


  • Deepika M G


This paper articulates that India has very little share in the world trade of agricultural commodities. This paper states that the importance of external trade lies with the linkage it has with the other sectors of the economy like the terms of trade, level of prices, trade balance, etc., which act as a mechanism to enhance growth in the economy. Further, this study examines the relationship between exports and growth in GDP in agriculture and finds that there is a two-way causation between the two, seen through the trends in simple growth rates and also through the results of the Granger Causality Test. An increase in export growth is preceded by a favorable growth in GDP in agriculture. But establishing the causality from exports to growth seems to be difficult, since the variables affecting the growth in agriculture are many. According to this study, the period of early 1990s and mid 1990s was favorable for all, as against the late 1990s, which showed a declining growth in prices, capital formation, exports and the GDP. This study also points out that the terms of trade has shifted in favor of agriculture in the 1990s, which seems to play a greater role in inducing the growth in the agriculture sector as well as in the economy.

Suggested Citation

  • Deepika M G, 2006. "Agricultural Trade and its Linkages to Macroeconomic Variables in the Indian Economy," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(1), pages 7-21, January.
  • Handle: RePEc:icf:icfjag:v:03:y:2006:i:1:p:7-21

    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.

    More about this item


    Access and download statistics


    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:icf:icfjag:v:03:y:2006:i:1:p:7-21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.