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Trade, Tastes and Nutrition in India

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  • David Atkin

Abstract

This paper introduces habit formation into an otherwise standard model of international trade. The liberalization of internal agriculture trade in India will generate short-run caloric losses unless income gains from trade are relatively large, and that there would be no such losses if tastes were identical across the country. The consumption patterns of inter-state migrants are examined, and .it is found that they consume fewer calories for a given level of food spending than otherwise similar consumers. This effect only disappears two generations after migration, as tastes adjust to local prices. These findings, which reflect the higher prices of preferred origin-state goods in the migrant’s destination state, further corroborate the assumptions of my model. [CGD}.

Suggested Citation

  • David Atkin, 2013. "Trade, Tastes and Nutrition in India," Working Papers id:5548, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:5548
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    References listed on IDEAS

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    1. Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
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    4. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    5. Prema-Chandra Athukorala, 2005. "Agricultural Trade Policy Reforms in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 6(1), pages 23-36, March.
    6. Raghbendra Jha & K. V. Bhanu Murthy & Anurag Sharma, 2008. "Market Integration in Wholesale Rice Markets in India," Palgrave Macmillan Books, in: Raghbendra Jha (ed.), The Indian Economy Sixty Years After Independence, chapter 13, pages 233-246, Palgrave Macmillan.
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    More about this item

    Keywords

    migrants; Trade; Tastes; Nutrition; India; local proces; calories; migration; internal agricultural; liberalization; consumers;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F10 - International Economics - - Trade - - - General

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