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Modelling International Castor Oil Market and Impacts of Changing Policy Scenarios for India

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  • D. D. Tewari

    (University of Natal)

Abstract

This paper develops an international model of castor oil market in a perfectly competitive framework. The model is then estimated and validated. The empirical model is then used for policy experimentation using simulation teaching. The alternative scenarios considered are: (i) improvement in the extraction efficiency, (ii) devaluation of the rupee, (iii) improved industrial activity in the EEC, and (iv) increase in castor hectarage in China. In cases (i) & (iii) there is a possibility of higher production and exports of castor oil. In case (ii) increase in exports will be marginal but domestic bean and oil prices will increase significantly.

Suggested Citation

  • D. D. Tewari, 1998. "Modelling International Castor Oil Market and Impacts of Changing Policy Scenarios for India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 33(1), pages 67-86, January.
    • Handle: RePEc:dse:indecr:v:33:y:1998:i:1:p:67-86
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    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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