The impact of India's demonetization on domestic agricultural trade
We examine the impact of an extreme monetary shock, India's demonetization of 2016, on domestic agricultural trade. Using data from around 3000 regulated markets for 35 major crops, we find that trade value fell by 16.3–16.8% in the short run, settling at 11.8–12.1% after eight months, driven primar...
| Autores principales: | , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2023
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/140419 |
| _version_ | 1855526836142866432 |
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| author | Aggarwal, Nidhi Narayanan, Sudha |
| author_browse | Aggarwal, Nidhi Narayanan, Sudha |
| author_facet | Aggarwal, Nidhi Narayanan, Sudha |
| author_sort | Aggarwal, Nidhi |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We examine the impact of an extreme monetary shock, India's demonetization of 2016, on domestic agricultural trade. Using data from around 3000 regulated markets for 35 major crops, we find that trade value fell by 16.3–16.8% in the short run, settling at 11.8–12.1% after eight months, driven primarily by a decline in prices. Triple difference estimates suggest sharpest impacts for kharif crops, perishables and crops with minimal government intervention. Markets far away from banks fared worse. Our results suggest that the implosion of value of agricultural trade domestically persisted two growing seasons beyond the one that coincided with the shock, whereas existing findings suggest that the negative impact on the economy as a whole dissipates in that time. |
| format | Journal Article |
| id | CGSpace140419 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1404192025-10-26T13:01:28Z The impact of India's demonetization on domestic agricultural trade Aggarwal, Nidhi Narayanan, Sudha domestic trade shock policies markets trade persistence domestic markets commodity markets monetary policies agricultural trade We examine the impact of an extreme monetary shock, India's demonetization of 2016, on domestic agricultural trade. Using data from around 3000 regulated markets for 35 major crops, we find that trade value fell by 16.3–16.8% in the short run, settling at 11.8–12.1% after eight months, driven primarily by a decline in prices. Triple difference estimates suggest sharpest impacts for kharif crops, perishables and crops with minimal government intervention. Markets far away from banks fared worse. Our results suggest that the implosion of value of agricultural trade domestically persisted two growing seasons beyond the one that coincided with the shock, whereas existing findings suggest that the negative impact on the economy as a whole dissipates in that time. 2023-01 2024-03-14T12:09:29Z 2024-03-14T12:09:29Z Journal Article https://hdl.handle.net/10568/140419 en Limited Access Wiley Aggarwal, Nidhi; and Narayanan, Sudha. 2023. The impact of India's demonetization on domestic agricultural trade. American Journal of Agricultural Economics 105(1): 316-340. https://doi.org/10.1111/ajae.12317 |
| spellingShingle | domestic trade shock policies markets trade persistence domestic markets commodity markets monetary policies agricultural trade Aggarwal, Nidhi Narayanan, Sudha The impact of India's demonetization on domestic agricultural trade |
| title | The impact of India's demonetization on domestic agricultural trade |
| title_full | The impact of India's demonetization on domestic agricultural trade |
| title_fullStr | The impact of India's demonetization on domestic agricultural trade |
| title_full_unstemmed | The impact of India's demonetization on domestic agricultural trade |
| title_short | The impact of India's demonetization on domestic agricultural trade |
| title_sort | impact of india s demonetization on domestic agricultural trade |
| topic | domestic trade shock policies markets trade persistence domestic markets commodity markets monetary policies agricultural trade |
| url | https://hdl.handle.net/10568/140419 |
| work_keys_str_mv | AT aggarwalnidhi theimpactofindiasdemonetizationondomesticagriculturaltrade AT narayanansudha theimpactofindiasdemonetizationondomesticagriculturaltrade AT aggarwalnidhi impactofindiasdemonetizationondomesticagriculturaltrade AT narayanansudha impactofindiasdemonetizationondomesticagriculturaltrade |