Role of terms of trade in Indian agricultural growth: a national and state level analysis

Using time series data, this paper analyses the relative contributions of terms of trade and non-price variables in explaining agricultural growth in recent decades in India. Agricultural growth is largely explained by expansion of irrigation, (which in the model is also a proxy for HYVs and other c...

Descripción completa

Detalles Bibliográficos
Autores principales: Hazell, Peter B. R., Misra, V. N., Hojjati, Behjat
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1995
Materias:
Acceso en línea:https://hdl.handle.net/10568/157077
_version_ 1855533383644348416
author Hazell, Peter B. R.
Misra, V. N.
Hojjati, Behjat
author_browse Hazell, Peter B. R.
Hojjati, Behjat
Misra, V. N.
author_facet Hazell, Peter B. R.
Misra, V. N.
Hojjati, Behjat
author_sort Hazell, Peter B. R.
collection Repository of Agricultural Research Outputs (CGSpace)
description Using time series data, this paper analyses the relative contributions of terms of trade and non-price variables in explaining agricultural growth in recent decades in India. Agricultural growth is largely explained by expansion of irrigation, (which in the model is also a proxy for HYVs and other capital investments), and, until the 1970s, by increases in the net cultivated area. Agricultural output is inelastic, and is becoming increasingly more so over time. The terms of trade was not an important factor in explaining past growth. Even during the late 1960s and early 1970s when the terms of trade improved by 18 percent for agriculture, they only accounted for 15 percent of the growth in output. Increases in agricultural output are also found to worsen the terms of trade for agriculture, despite government attempts to control prices. The results highlight the importance of further investments in agricultural research, extension, irrigation and other supply-enhancing inputs if the ongoing policy reforms in India are to translate into more rapid and sustained agricultural growth.
format Artículo preliminar
id CGSpace157077
institution CGIAR Consortium
language Inglés
publishDate 1995
publishDateRange 1995
publishDateSort 1995
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1570772025-11-06T07:03:51Z Role of terms of trade in Indian agricultural growth: a national and state level analysis Hazell, Peter B. R. Misra, V. N. Hojjati, Behjat agricultural productivity terms of trade investment Using time series data, this paper analyses the relative contributions of terms of trade and non-price variables in explaining agricultural growth in recent decades in India. Agricultural growth is largely explained by expansion of irrigation, (which in the model is also a proxy for HYVs and other capital investments), and, until the 1970s, by increases in the net cultivated area. Agricultural output is inelastic, and is becoming increasingly more so over time. The terms of trade was not an important factor in explaining past growth. Even during the late 1960s and early 1970s when the terms of trade improved by 18 percent for agriculture, they only accounted for 15 percent of the growth in output. Increases in agricultural output are also found to worsen the terms of trade for agriculture, despite government attempts to control prices. The results highlight the importance of further investments in agricultural research, extension, irrigation and other supply-enhancing inputs if the ongoing policy reforms in India are to translate into more rapid and sustained agricultural growth. 1995 2024-10-24T12:47:10Z 2024-10-24T12:47:10Z Working Paper https://hdl.handle.net/10568/157077 en Open Access application/pdf International Food Policy Research Institute Hazell, Peter B. R.; Misra, V. N.; Hojjati, Behjat. 1995. Role of terms of trade in Indian agricultural growth: a national and state level analysis. EPTD Discussion Paper 15. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/157077
spellingShingle agricultural productivity
terms of trade
investment
Hazell, Peter B. R.
Misra, V. N.
Hojjati, Behjat
Role of terms of trade in Indian agricultural growth: a national and state level analysis
title Role of terms of trade in Indian agricultural growth: a national and state level analysis
title_full Role of terms of trade in Indian agricultural growth: a national and state level analysis
title_fullStr Role of terms of trade in Indian agricultural growth: a national and state level analysis
title_full_unstemmed Role of terms of trade in Indian agricultural growth: a national and state level analysis
title_short Role of terms of trade in Indian agricultural growth: a national and state level analysis
title_sort role of terms of trade in indian agricultural growth a national and state level analysis
topic agricultural productivity
terms of trade
investment
url https://hdl.handle.net/10568/157077
work_keys_str_mv AT hazellpeterbr roleoftermsoftradeinindianagriculturalgrowthanationalandstatelevelanalysis
AT misravn roleoftermsoftradeinindianagriculturalgrowthanationalandstatelevelanalysis
AT hojjatibehjat roleoftermsoftradeinindianagriculturalgrowthanationalandstatelevelanalysis