Market access, price policy and diversification in Indian agriculture
This paper provides empirical evidence of a causal relationship between the access to markets and the crop partial policies on the pattern of specialization or diversification in Indian agriculture. We uniquely combine highly spatially disaggregated data on cropping patterns, amenities, and market s...
| Autores principales: | , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
Indira Gandhi Institute of Development Research
2020
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/143614 |
| _version_ | 1855513428712488960 |
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| author | Negi, Digvijay S. Birthal, Pratap Singh Roy, Devesh Hazrana, Jaweriah |
| author_browse | Birthal, Pratap Singh Hazrana, Jaweriah Negi, Digvijay S. Roy, Devesh |
| author_facet | Negi, Digvijay S. Birthal, Pratap Singh Roy, Devesh Hazrana, Jaweriah |
| author_sort | Negi, Digvijay S. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper provides empirical evidence of a causal relationship between the access to markets and the crop partial policies on the pattern of specialization or diversification in Indian agriculture. We uniquely combine highly spatially disaggregated data on cropping patterns, amenities, and market size at a granular level, and construct a measure of market access using indicators from both the supply and the demand side of trade. We employ the heteroscedasticity based two-stage Lewbel (2012) estimator to address the possible endogeneity of market access and also test for non-linearity between market access and crop diversification. Our results show that locations connected with bigger markets are more diversified into vegetables, and cash crops like oilseeds and cotton. However, the effect of market access moderates after a threshold level of diversification probably because of the non-market constraints. Nonetheless, the policy-induced distortions in agri-food markets, the nucleus of policies in the form of procurement of cereals mainly rice and wheat at the government-determined pre-announced minimum support prices, significantly attenuates the effect of market access on crop diversification. |
| format | Artículo preliminar |
| id | CGSpace143614 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | Indira Gandhi Institute of Development Research |
| publisherStr | Indira Gandhi Institute of Development Research |
| record_format | dspace |
| spelling | CGSpace1436142024-10-25T07:52:51Z Market access, price policy and diversification in Indian agriculture Negi, Digvijay S. Birthal, Pratap Singh Roy, Devesh Hazrana, Jaweriah supply balance policies grain crops agriculture oilseeds market access trade diversification poverty prices rural areas This paper provides empirical evidence of a causal relationship between the access to markets and the crop partial policies on the pattern of specialization or diversification in Indian agriculture. We uniquely combine highly spatially disaggregated data on cropping patterns, amenities, and market size at a granular level, and construct a measure of market access using indicators from both the supply and the demand side of trade. We employ the heteroscedasticity based two-stage Lewbel (2012) estimator to address the possible endogeneity of market access and also test for non-linearity between market access and crop diversification. Our results show that locations connected with bigger markets are more diversified into vegetables, and cash crops like oilseeds and cotton. However, the effect of market access moderates after a threshold level of diversification probably because of the non-market constraints. Nonetheless, the policy-induced distortions in agri-food markets, the nucleus of policies in the form of procurement of cereals mainly rice and wheat at the government-determined pre-announced minimum support prices, significantly attenuates the effect of market access on crop diversification. 2020-05-01 2024-05-22T12:15:35Z 2024-05-22T12:15:35Z Working Paper https://hdl.handle.net/10568/143614 en Open Access Indira Gandhi Institute of Development Research Negi, Digvijay S.; Birthal, Pratap S.; Roy, Devesh; and Hazrana, Jaweriah. 2020. Market access, price policy and diversification in Indian agriculture. IGIDR Working Paper WP-2020-009. http://www.igidr.ac.in/working-paper-market-access-price-policy-diversification-indian-agriculture/ |
| spellingShingle | supply balance policies grain crops agriculture oilseeds market access trade diversification poverty prices rural areas Negi, Digvijay S. Birthal, Pratap Singh Roy, Devesh Hazrana, Jaweriah Market access, price policy and diversification in Indian agriculture |
| title | Market access, price policy and diversification in Indian agriculture |
| title_full | Market access, price policy and diversification in Indian agriculture |
| title_fullStr | Market access, price policy and diversification in Indian agriculture |
| title_full_unstemmed | Market access, price policy and diversification in Indian agriculture |
| title_short | Market access, price policy and diversification in Indian agriculture |
| title_sort | market access price policy and diversification in indian agriculture |
| topic | supply balance policies grain crops agriculture oilseeds market access trade diversification poverty prices rural areas |
| url | https://hdl.handle.net/10568/143614 |
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