Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development
This paper analyses relative contribution of intensive and extensive margins to growth in India’s agricultural exports for the period 2001 to 2020. Two alternative approaches are employed to estimating export margins: the traditional approach of using export volume across product lines, and a robust...
| Autores principales: | , |
|---|---|
| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2022
|
| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/140870 |
| _version_ | 1855531481679527936 |
|---|---|
| author | Kannan, Elumalai Kumar, Anjani |
| author_browse | Kannan, Elumalai Kumar, Anjani |
| author_facet | Kannan, Elumalai Kumar, Anjani |
| author_sort | Kannan, Elumalai |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper analyses relative contribution of intensive and extensive margins to growth in India’s agricultural exports for the period 2001 to 2020. Two alternative approaches are employed to estimating export margins: the traditional approach of using export volume across product lines, and a robust method proposed by Hummels and Klenow (2005). The paper also examines the determinants of export margins through a standard gravity model. Traditional method of decomposing export growth shown that intensification of the export of existing products to existing destinations dominated export growth. The contribution of export diversification to export growth has remained subdued in the last two decades. Within the extensive margin, contribution of product diversification to export growth was more important than the contribution of geographic diversification. According to the Hummels and Klenow approach, during the 2001 to 2020 period, the extensive margin grew at 1.24 percent per annum, while the intensive margin increased at 0.23 percent. The contribution of growth at the extensive margin increased from 58.8 percent in 2001 to 70.2 percent in 2020. Gravity model results revealed that, among other variables, a positive and significant effect of free trade agreement on export margins. Broadly the study results point out that India’s exports along the extensive margin has not been fully exploited and that export diversification holds the key to higher export growth in agricultural products. There is wide scope for expansion of India’s agricultural exports through development of new product varieties and new markets. |
| format | Artículo preliminar |
| id | CGSpace140870 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1408702025-12-02T21:03:03Z Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development Kannan, Elumalai Kumar, Anjani models trade openness exports comparative advantage agriculture trade diversification prices agricultural trade This paper analyses relative contribution of intensive and extensive margins to growth in India’s agricultural exports for the period 2001 to 2020. Two alternative approaches are employed to estimating export margins: the traditional approach of using export volume across product lines, and a robust method proposed by Hummels and Klenow (2005). The paper also examines the determinants of export margins through a standard gravity model. Traditional method of decomposing export growth shown that intensification of the export of existing products to existing destinations dominated export growth. The contribution of export diversification to export growth has remained subdued in the last two decades. Within the extensive margin, contribution of product diversification to export growth was more important than the contribution of geographic diversification. According to the Hummels and Klenow approach, during the 2001 to 2020 period, the extensive margin grew at 1.24 percent per annum, while the intensive margin increased at 0.23 percent. The contribution of growth at the extensive margin increased from 58.8 percent in 2001 to 70.2 percent in 2020. Gravity model results revealed that, among other variables, a positive and significant effect of free trade agreement on export margins. Broadly the study results point out that India’s exports along the extensive margin has not been fully exploited and that export diversification holds the key to higher export growth in agricultural products. There is wide scope for expansion of India’s agricultural exports through development of new product varieties and new markets. 2022-05-01 2024-04-12T13:36:47Z 2024-04-12T13:36:47Z Working Paper https://hdl.handle.net/10568/140870 en Open Access application/pdf International Food Policy Research Institute Kannan, Elumalai; and Kumar, Anjani. 2022. Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development. IFPRI Discussion Paper 2119. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.135900. |
| spellingShingle | models trade openness exports comparative advantage agriculture trade diversification prices agricultural trade Kannan, Elumalai Kumar, Anjani Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development |
| title | Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development |
| title_full | Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development |
| title_fullStr | Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development |
| title_full_unstemmed | Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development |
| title_short | Intensive and extensive margins of India’s agricultural trade: Implications for export diversification and development |
| title_sort | intensive and extensive margins of india s agricultural trade implications for export diversification and development |
| topic | models trade openness exports comparative advantage agriculture trade diversification prices agricultural trade |
| url | https://hdl.handle.net/10568/140870 |
| work_keys_str_mv | AT kannanelumalai intensiveandextensivemarginsofindiasagriculturaltradeimplicationsforexportdiversificationanddevelopment AT kumaranjani intensiveandextensivemarginsofindiasagriculturaltradeimplicationsforexportdiversificationanddevelopment |