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Efficiency of India’s Agricultural Exports

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  • Tina Barma

Abstract

This article is an empirical study employing various time-invariant and time-varying specifications of a stochastic gravity model of trade. It enumerates the inefficiency component among the determinants of Indian agricultural export flows to 112 partner countries, over the years 2000–2013. The panel study finds empirical support for high yet decreasing home country inefficiency or ‘behind-the-border’ constraints to trade. Also significance of regional groups ASEAN, SAFTA and Africa shows that trade policy concentrating on developing countries have been successful export policies. Thus, the export efficiency scores help in articulating future policy initiatives for diversification of the country’s exports according to the significance and level of efficiency of partners. Nevertheless, literal interpretations of the efficiency scores are sensitive to the nature of modelling and their specifications.

Suggested Citation

  • Tina Barma, 2017. "Efficiency of India’s Agricultural Exports," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 18(2), pages 276-295, September.
    • Handle: RePEc:sae:soueco:v:18:y:2017:i:2:p:276-295
    DOI: 10.1177/1391561417713130
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    References listed on IDEAS

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    More about this item

    Keywords

    Stochastic gravity; panel data; inefficiency estimates; exports; India;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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