IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v19y2018i5p1363-1378.html
   My bibliography  Save this article

Dynamics of Food Inflation: Assessing the Role of Intermediaries

Author

Listed:
  • Sugandha Huria
  • Kanika Pathania

Abstract

The recent upsurge in the food prices experienced by the Indian economy since the latter half of 2000s has made it imperative for the policymakers to identify the crucial factors, which affect food prices within the economy. Against this backdrop, the present article determines the various key factors impacting the prices of food grains, specifically elucidating the role of intermediaries in this regard. By applying the autoregressive distributed lag (ARDL) approach to cointegration and quantifying the role of intermediaries by computing the price wedge between wholesale and retail prices of food grains, the study establishes the existence of both short-run and long-run relationships between price wedge and food grain inflation.

Suggested Citation

  • Sugandha Huria & Kanika Pathania, 2018. "Dynamics of Food Inflation: Assessing the Role of Intermediaries," Global Business Review, International Management Institute, vol. 19(5), pages 1363-1378, October.
    • Handle: RePEc:sae:globus:v:19:y:2018:i:5:p:1363-1378
    DOI: 10.1177/0972150918788763
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972150918788763
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972150918788763?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. Muhammad Shahbaz & Mohammad Mafizur Rahman, 2012. "The Dynamic of Financial Development, Imports, Foreign Direct Investment and Economic Growth: Cointegration and Causality Analysis in Pakistan," Global Business Review, International Management Institute, vol. 13(2), pages 201-219, June.
    2. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    3. M. Hashem Pesaran & Ron P. Smith, 1998. "Structural Analysis of Cointegrating VARs," Journal of Economic Surveys, Wiley Blackwell, vol. 12(5), pages 471-505, December.
    4. Thangzason Sonna & Himanshu Joshi & Alice Sebastin & Upasana Sharma, 2014. "Analytics of Food Inflation in India," Working Papers id:6174, eSocialSciences.
    5. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    6. Mishra, Prachi & Roy, Devesh, 2012. "Explaining Inflation in India: The Role of Food Prices," India Policy Forum, National Council of Applied Economic Research, vol. 8(1), pages 139-224.
    7. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
    8. Subrata Ghatak & Jalal Siddiki, 2001. "The use of the ARDL approach in estimating virtual exchange rates in India," Journal of Applied Statistics, Taylor & Francis Journals, vol. 28(5), pages 573-583.
    9. Rudrani Bhattacharya & Abhijit Sen Gupta, 2015. "Food Inflation in India: Causes and Consequences," Working Papers id:7141, eSocialSciences.
    10. Raghav Gaiha & Veena Kulkarni, 2005. "Anthropometric failure and persistence of poverty in rural India," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(2), pages 179-197.
    11. Pesaran, M. Hashem & Shin, Yongcheol, 1996. "Cointegration and speed of convergence to equilibrium," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 117-143.
    12. Pami Dua & Upasna Gaur, 2010. "Determination of inflation in an open economy Phillips curve framework: the case of developed and developing Asian countries," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 3(1), pages 33-51.
    13. Aviral Kumar Tiwari & Muhammad Shahbaz, 2013. "Modelling the Relationship between Whole Sale Price and Consumer Price Indices: Cointegration and Causality Analysis for India," Global Business Review, International Management Institute, vol. 14(3), pages 397-411, September.
    14. Shahbaz, Muhammad & Islam, Faridul & Sabihuddin Butt, Muhammad, 2015. "Finance-Growth-Energy Nexus and the Role of Agriculture and Modern Sectors: Evidence from ARDL Bounds Test Approach to Cointegration in Pakistan," MPRA Paper 62848, University Library of Munich, Germany, revised 14 Mar 2015.
    15. Zeileis, Achim & Shah, Ajay & Patnaik, Ila, 2010. "Testing, monitoring, and dating structural changes in exchange rate regimes," Computational Statistics & Data Analysis, Elsevier, vol. 54(6), pages 1696-1706, June.
    16. Mohsen Bahmani‐Oskooee & A. B. M. Nasir, 2004. "ARDL Approach to Test the Productivity Bias Hypothesis," Review of Development Economics, Wiley Blackwell, vol. 8(3), pages 483-488, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ramesh Chandra Das, 2021. "Does Minimum Support Price Have Long-Run Associations and Short-Run Interplays with Yield Rates and Quantities of Outputs? A Study on Food and Non-food Grains in India," Review of Market Integration, India Development Foundation, vol. 13(1), pages 42-65, April.
    2. Asharani Samal & Mallesh Ummalla & Phanindra Goyari, 2022. "The impact of macroeconomic factors on food price inflation: an evidence from India," Future Business Journal, Springer, vol. 8(1), pages 1-14, December.
    3. Njegovan Nikola & Simin Mirela Tomaš, 2020. "Inflation and Prices of Agricultural Products," Economic Themes, Sciendo, vol. 58(2), pages 203-217, June.

    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. Shaheen, Safana & Awan, Masood Sarwar & Waqas, Muhammad & Aslam, Muhammad Amir, 2011. "Financial Development, International Trade and Economic Growth: Empirical Evidence from Pakistan," MPRA Paper 32876, University Library of Munich, Germany.
    2. Phouphet Kyophilavong & Muhammad Shahbaz & Gazi Salah Uddin, 2015. "A Note on Nominal and Real Devaluation in Laos," Global Business Review, International Management Institute, vol. 16(2), pages 236-243, April.
    3. Mohammad Monjurul Hoque & Zulkornain Yusop, 2012. "Impacts of Trade Liberalization on Export Performance in Bangladesh: An Empirical Investigation," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 13(2), pages 207-239, September.
    4. Adegboyega Raymond Rahaj, 2018. "Eternal Debt and Economic Growth in Nigeria: An ARDL Approach," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(4), pages 581-596, AUGUST.
    5. Mujahid, Noureen & Muhammad Shahbaz, Shabbir & Shahbaz, Muhammad, 2014. "Labor Market Conditions-Female Labor Supply Nexus: The Role of Globalization in Pakistan," MPRA Paper 57179, University Library of Munich, Germany, revised 07 Jul 2014.
    6. Nooreen Mujahid & Muhammad Shahbaz Shabbir & Muhammad Shahbaz, 2016. "Labour Market Conditions–Female Labour Supply Nexus: The Role of Globalization in Pakistan," Global Business Review, International Management Institute, vol. 17(1), pages 68-87, February.
    7. Karakotsios, Achillefs & Katrakilidis, Constantinos & Kroupis, Nikolaos, 2021. "The dynamic linkages between food prices and oil prices. Does asymmetry matter?," The Journal of Economic Asymmetries, Elsevier, vol. 23(C).
    8. Tan, Madeleine Sui-Lay, 2016. "Policy coordination among the ASEAN-5: A global VAR analysis," Journal of Asian Economics, Elsevier, vol. 44(C), pages 20-40.
    9. Hatzenbuehler, Patrick L. & Abbott, Philip C. & Foster, Kenneth A., 2016. "Agricultural Commodity Prices and Exchange Rates under Structural Change," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    10. Sari, Ramazan & Hammoudeh, Shawkat & Soytas, Ugur, 2010. "Dynamics of oil price, precious metal prices, and exchange rate," Energy Economics, Elsevier, vol. 32(2), pages 351-362, March.
    11. Muhammad, Anees & Ishfaq, Ahmed, 2011. "Industrial development, agricultural growth, urbanization and environmental Kuznets curve in Pakistan," MPRA Paper 33469, University Library of Munich, Germany.
    12. Desire Wade Atchike & Zhen-Yu Zhao & Geriletu Bao, 2020. "The Relationship between Electricity Consumption, Foreign Direct Investment and Economic Growth: Case of Benin," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 507-515.
    13. Hossain, Akhand Akhtar, 2008. "The Agricultural and the External (Net Barter) Terms of Trade in Bangladesh: Trends, Movements and Relationships, 1952-2006," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 4(01-2), pages 1-15.
    14. Md. Qamruzzaman & Rajnish Kler, 2023. "Do Clean Energy and Financial Innovation Induce SME Performance? Clarifying the Nexus between Financial Innovation, Technological Innovation, Clean Energy, Environmental Degradation, and SMEs Performa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 313-324, May.
    15. Phouphet Kyophilavong & Gazi Salah Uddin & Muhammad Shahbaz, 2016. "The Nexus between Financial Development and Economic Growth in Lao PDR," Global Business Review, International Management Institute, vol. 17(2), pages 303-317, April.
    16. Bilas Vlatka & Bosnjak Mile & Novak Ivan, 2017. "Examining the Relationship between Financial Development and International Trade in Croatia," South East European Journal of Economics and Business, Sciendo, vol. 12(1), pages 80-88, April.
    17. Shahbaz, Muhammad & Islam , Faridul & Shabbir, Muhammad Shahbaz, 2012. "Phillips Curve in a Small Open Economy: A Time Series Exploration of North Cyprus," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(4), pages 113-130, December.
    18. Nusair, Salah A. & Olson, Dennis & Al-Khasawneh, Jamal A., 2024. "Asymmetric effects of economic policy uncertainty on demand for money in developed countries," The Journal of Economic Asymmetries, Elsevier, vol. 29(C).
    19. Phouphet KYOPHILAVONG & Gazi Salah Uddin & Muhammad Shahbaz, 2014. "The Nexus Between Financial Development and Economic Growth in Laos," Working Papers 2014-447, Department of Research, Ipag Business School.
    20. Benchimol, Jonathan & Palumbo, Luigi, 2024. "Sanctions and Russian online prices," Journal of Economic Behavior & Organization, Elsevier, vol. 225(C), pages 483-521.

    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:sae:globus:v:19:y:2018:i:5:p:1363-1378. 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: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    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.