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Do Macroeconomic Conditions Matter For Agriculture? The Indian Experience

Author

Listed:
  • SHASHANKA BHIDE

    (National Council of Applied Economic Research, New Delhi, India)

  • B. P. VANI

    (Institute for Social and Economic Change, Bangalore, India)

  • MEENAKSHI RAJEEV

    (Institute for Social and Economic Change, Bangalore, India)

Abstract

Macroeconomic instability, characterised by high inflation, fragile foreign exchange positions and high rates of interest, increases uncertainty and hence slows down economic growth. While this is generally accepted, the usual perception about the agricultural sector, particularly in India, is that it is immune to general macroeconomic shocks. In this paper, we examine this perception using a vector autoregressive model. The findings show that the agricultural sector is not insulated from macroeconomic shocks.

Suggested Citation

  • Shashanka Bhide & B. P. Vani & Meenakshi Rajeev, 2010. "Do Macroeconomic Conditions Matter For Agriculture? The Indian Experience," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(04), pages 647-670.
    • Handle: RePEc:wsi:serxxx:v:55:y:2010:i:04:n:s0217590810003997
    DOI: 10.1142/S0217590810003997
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    References listed on IDEAS

    as
    1. Rangarajan, C., 1982. "Agricultural growth and industrial performance in India:," Research reports 33, International Food Policy Research Institute (IFPRI).
    2. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    3. Pesaran, H. Hashem & Shin, Yongcheol, 1998. "Generalized impulse response analysis in linear multivariate models," Economics Letters, Elsevier, vol. 58(1), pages 17-29, January.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Mathew, Merlin, 2021. "Impact of Macroeconomic Policies on Agricultural Performance in India: A Vector Auto Regression Approach," 2021 Conference, August 17-31, 2021, Virtual 315158, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Macroeconomic shocks; vector autoregression; agricultural output; agricultural investment; agricultural exports; E60; Q180; Q200;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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