IDEAS home Printed from https://ideas.repec.org/a/ags/reowae/321871.html
   My bibliography  Save this article

Competitiveness of Indian Agricultural Exports: A Constant Market Share Analysis

Author

Listed:
  • Kumar, K. Nirmal Ravi

Abstract

The 1991 Indian reforms aimed at economic liberalization, as a part of its economic structural adjustment, and transformed the nation’s economy into a more global market-based and service-oriented system, which revolutionized its agricultural trade facet. The new regime paved the way for the self-reliant Indian agriculture to expand its roots into the spheres of global competitiveness and export orientation. India enjoys competitive advantage in the international market and considering the growth in India’s exports of major agricultural commodities. This study employed Constant Market Share model to analyze the export performance of its various facets such as diversification, instability, elasticity, competitiveness, etc. The findings revealed that India’s growth performance of major agricultural commodities’ exports both in terms of quantity and value was found satisfactory (except wheat and cashew nuts, shelled (quantity)) during 1991-2020. During the recent past decade, i.e., 2011-2020, World Demand Effect (WDE) is the main sources of India’s agricultural export performance (due to general rise/fall in world demand given a constant market share of the India, unlike Market Distribution Effect (MDE), Commodity Composition Effect (CCE) and the Residual Competitiveness Effect (RCE) due to high inconsistency arising out of changes in external environment). Both MDE and RCE with respect to commodity-wise exports and CCE and RCE with respect to country-wise exports are found negative for majority of commodities and countries (markets) respectively. Consistently negative CCE for exports of agricultural products, total and across major export destinations were found more disheartening and this should deserve special attention. So, it is imperative to boost the export competitiveness of agricultural commodities from India and the future prospects of exports depend on how much the latest surge in COVID-19 infections in India affects its agricultural production and global demand conditions.

Suggested Citation

  • Kumar, K. Nirmal Ravi, 2022. "Competitiveness of Indian Agricultural Exports: A Constant Market Share Analysis," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 3(2), May.
    • Handle: RePEc:ags:reowae:321871
    DOI: 10.22004/ag.econ.321871
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/321871/files/514-1319-2-PB.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.321871?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. C. J. Jepma, 1989. "Extensions of the Constant-Market-Shares Analysis with an Application to Long-term Export Data of Developing Countries," International Economic Association Series, in: Jeffrey G. Williamson & Vadiraj R. Panchamukhi (ed.), The Balance between Industry and Agriculture in Economic Development, chapter 6, pages 129-143, Palgrave Macmillan.
    2. Singh, Kehar & Sain, Inder, 2003. "Prospects of Agricultural Exports of India: A Composite Index Approach," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 58(4), December.
    3. Kozicka, Marta & Kalkuhl, Matthias & Saini, Shweta & Brockhaus, Jan, 2014. "Modeling Indian Wheat and Rice Sector Policies," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169808, Agricultural and Applied Economics Association.
    4. Nidhi Bagaria & Saba Ismail, 2019. "Export Performance of China: A Constant Market Share Analysis," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 14(1), pages 110-130, March.
    5. Richardson, J David, 1971. "Some Sensitivity Tests for a 'Constant-Market-Shares' Analysis of Export Growth," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 300-304, August.
    6. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
    7. Ahmadi-Esfahani, Fredoun Z., 1995. "Wheat market shares in the presence of Japanese import quotas," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 315-323, June.
    8. Michael L. Cook & Maury E. Bredahl, 1991. "Agribusiness Competitiveness in the 1990s: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(5), pages 1472-1473.
    9. Love, J., 1984. "External market conditions, competitiveness, diversification and LDCs' exports," Journal of Development Economics, Elsevier, vol. 16(3), pages 279-291, December.
    10. Evi Thelia Sari & Maria Rochelle G. Divinagracia, 2021. "Revealed comparative advantage and constant market share analysis of Indonesian cinnamon in the world market," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 14(2), pages 187-198.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Yan & Shi, Xunpeng & Laurenceson, James, 2020. "Dynamics of Australia's LNG export performance: A modified constant market shares analysis," Energy Economics, Elsevier, vol. 89(C).
    2. Guo, Zhichao & Feng, Yuanhua, 2013. "Modeling of the impact of the financial crisis and China's accession to WTO on China's exports to Germany," Economic Modelling, Elsevier, vol. 31(C), pages 474-483.
    3. Guo, Zhichao & Feng, Yuanhua & Tan, Xiangyong, 2011. "Short- and long-term impact of remarkable economic events on the growth causes of China–Germany trade in agri-food products," Economic Modelling, Elsevier, vol. 28(6), pages 2359-2368.
    4. Ahmadi-Esfahani, Fredoun Z., 2006. "Constant market shares analysis: uses, limitations and prospects," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(4), pages 1-17, December.
    5. Yuanhua Feng & Zhichao Guo & Christian Peitz, 2014. "A Tree-form Constant Market Share Model for Growth Causes in International Trade Based on Multi-level Classification," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 207-228, June.
    6. Valenciano, Jaime De Pablo & Uriarte, Maria Mercedes Capobianco & Battistuzzi, Miguel Angel Giacinti, 2017. "South Africa’s competitiveness against its main competitors in the market of pears imported by the EU28," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 56(2), March.
    7. Zhichao Guo & Yuanhua Feng & Xiangyong Tan, 2011. "Impact of China's accession to WTO and the financial crisis on China's exports to Germany," Working Papers CIE 36, Paderborn University, CIE Center for International Economics.
    8. Gutiérrez, Gabriel, 2005. "Ex-post evaluation of the employment effects of a preferential trade agreement: methodological issues, illustrated with a reference to Chile," Comercio Internacional 4399, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Kumar, K. Nirmal Ravi & Mishra, S.N. & Raju, V.T., 2023. "Competitiveness of Indian Agricultural Commodities – Constant Market Share Analysis," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 2), April.
    10. Kar, Saibal & Kar, Mausumi, 2010. "The multi fibre arrangement and South Asia," MPRA Paper 103801, University Library of Munich, Germany.
    11. Dijck, P. van & Verbruggen, H., 1981. "A constant-market-shares analysis of ASEAN manufactured exports to the European Community," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    12. Dumont, Michel, 2005. "Do we have to look at China to tell our fortune?," MPRA Paper 102433, University Library of Munich, Germany.
    13. Escaith, Hubert, 2021. "Revisiting constant market share analysis: An exercise applied to NAFTA," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 47123, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    14. David Roland Holst & John Weiss, 2004. "ASEAN and China: Export Rivals or Partners in Regional Growth?," The World Economy, Wiley Blackwell, vol. 27(8), pages 1255-1274, August.
    15. Horwitz, Eva Christina, 1983. "Export Performance of the Nordic Countries 1965-1980: A Constant-Market-Shares Analysis," Working Paper Series 85, Research Institute of Industrial Economics.
    16. Boniface Bounoung Fouda, 2007. "Impact de l'AGOA sur les pays éligibles: Analyse à travers le modèle CMS," Post-Print halshs-00204030, HAL.
    17. Edward K.Y. Chen, 1987. "Foreign Trade and Economic Growth in Hong Kong: Experience and Prospects," NBER Chapters, in: Trade and Structural Change in Pacific Asia, pages 333-378, National Bureau of Economic Research, Inc.
    18. Raphaël Chiappini, 2010. "Dynamique des spécialisations et performances commerciales des pays d'Europe centrale et orientale (PECO)," Working Papers hal-00637591, HAL.
    19. Loseby, M. & Venzi, L., 1981. "The Significance of the EEC Enlargement for Trade in Processed Agricultural Products and the Food Industry," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 18.
    20. Le Thi Bich Lien & Dalut Alfred Nanwul, 2018. "A Comparison on Rice export between China and Vietnam: A constant market share analysis," E3 Journal of Business Management and Economics., E3 Journals, vol. 9(1), pages 001-011.

    More about this item

    Keywords

    Production Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:reowae:321871. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.nassg.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.