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The Debate on Agriculture-Industry Terms of Trade in India

  • Surajit Deb

    (Ram Lal Anand College (Evening))

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    In this paper, we focus on the vast literature that involved analysis of the agriculture-industry terms of trade in India. We first state the key policy issues that are found to be associated with changes in terms of trade variable, and subsequently discuss specific issues concerning the empirical estimation of agricultural terms of trade. We find that the barter terms of trade measure may not only be subject to an aggregation error associated with the index number construction, but is also exposed to the aggregation problems of empirical estimation. We also undertake a set of statistical tests to examine the difference among various agricultural net barter terms of trade series on India. The results indicate that in spite of the methodological differences, the alternate series reflect similar attributes over comparable time periods.

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    File URL: http://www.cdedse.org/pdf/work109.pdf
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    Paper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 109.

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    Length: 50 pages
    Date of creation: Nov 2002
    Date of revision:
    Handle: RePEc:cde:cdewps:109
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    1. Lee, Kevin C & Pesaran, M Hashem & Pierse, Richard G, 1990. "Testing for Aggregation Bias in Linear Models," Economic Journal, Royal Economic Society, vol. 100(400), pages 137-50, Supplemen.
    2. Datt, Gaurav & Ravallion, Martin, 1996. "Macroeconomic crises and poverty monitoring : a case study for India," Policy Research Working Paper Series 1685, The World Bank.
    3. M. H. Pesaran & R. G. Pierse & M. S. Kumar, 1988. "Econometric Analysis of Aggregation in the Context of Linear Prediction Models," UCLA Economics Working Papers 485, UCLA Department of Economics.
    4. Rao, J. Mohan, 1989. "Getting agricultural prices right," Food Policy, Elsevier, vol. 14(1), pages 28-42, February.
    5. Schiff, Maurice & Montenegro, Claudio E, 1997. "Aggregate Agricultural Supply Response in Developing Countries: A Survey of Selected Issues," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 393-410, January.
    6. Stoker, Thomas M, 1993. "Empirical Approaches to the Problem of Aggregation Over Individuals," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1827-74, December.
    7. Ghose, A K, 1989. "Rural Poverty and Relative Prices in India," Cambridge Journal of Economics, Oxford University Press, vol. 13(2), pages 307-31, June.
    8. Rangarajan, C., 1982. "Agricultural growth and industrial performance in India:," Research reports 33, International Food Policy Research Institute (IFPRI).
    9. T. Palanivel, 1995. "Aggregate Supply Responses in Indian Agriculture: Some Empirical Evidence and Policy Implications," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 30(2), pages 251-263, July.
    10. Martin Ravallion & Gaurav Datt, 1996. "India's Checkered History in Fight against Poverty: Are There Lessons for the Future?," Monash Economics Working Papers archive-33, Monash University, Department of Economics.
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