IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61854.html
   My bibliography  Save this paper

Markets, Institutions, and the Quality of Agricultural Products: Cotton Quality in India

Author

Listed:
  • MacDonald, Stephen
  • Naik, Gopal
  • Landes, Rip

Abstract

The modern global textile industry requires cotton with strong and consistent fibers in order to produce high quality goods at the high speeds necessary to recover capital costs. The introduction of high volume instrument (HVI) measurement of cotton fiber quality has strengthened the link between cotton prices and attributes on world markets. The spread of genetically modified (GMO) cotton in India has driven India to the second ranked producer and exporter of cotton in the world. However, contamination and other quality problems are endemic to Indian cotton. Using a unique data set of Indian cotton prices and quality attributes from 5 Indian states, this study uses hedonic price modeling to demonstrate that the linkages between cotton quality and price are weaker in India than they are in the United States.

Suggested Citation

  • MacDonald, Stephen & Naik, Gopal & Landes, Rip, 2010. "Markets, Institutions, and the Quality of Agricultural Products: Cotton Quality in India," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61854, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61854
    DOI: 10.22004/ag.econ.61854
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/61854/files/AAEA_Cotton%20Quality%20in%20India_042710.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.61854?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. Unknown, 2008. "Institute of Agricultural Economics," Economics of Agriculture, Institute of Agricultural Economics, vol. 55(3).
    2. Brown, Jeff E. & Ethridge, Don E. & Hudson, Darren & Engels, Carlos, 1995. "An Automated Econometric Approach For Estimating And Reporting Daily Cotton Market Prices," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    4. Martinez, Steve W. & Smith, Kevin E. & Zering, Kelly D., 1998. "Analysis of Changing Methods of Vertical Coordination in the Pork Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(2), pages 301-311, December.
    5. Richard Bennett & Uma Kambhampati & Stephen Morse & Yousouf Ismael, 2006. "Farm-Level Economic Performance of Genetically Modified Cotton in Maharashtra, India," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(1), pages 59-71.
    6. Ethridge, Don E. & Davis, Bob, 1982. "Hedonic Price Estimation For Commodities: An Application To Cotton," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-8, December.
    7. repec:ags:joaaec:v:30:y:1998:i:2:p:301-11 is not listed on IDEAS
    8. Ethridge, Don E. & Neeper, Jarral T., 1987. "Producer Returns from Cotton Strength and Uniformity: An Hedonic Price Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(1), pages 91-98, July.
    9. Brown, Jeff E. & Ethridge, Don E., 1995. "Functional Form Model Specification: An Application to Hedonic Pricing," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(2), pages 166-173, October.
    10. Brown, Jeff E. & Ethridge, Don E., 1995. "Functional Form Model Specification: An Application To Hedonic Pricing," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(2), pages 1-8, October.
    11. Darren Hudson & Don Ethridge & Jeff Brown, 1996. "Producer prices in cotton markets: Evaluation of reported price information accuracy," Agribusiness, John Wiley & Sons, Ltd., vol. 12(4), pages 353-362.
    12. Ethridge, Don E. & Neeper, Jarral T., 1987. "Producer Returns From Cotton Strength And Uniformity: An Hedonic Price Approach," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(1), pages 1-7, July.
    13. Chen, Changping & Ethridge, Don E. & Fletcher, Stanley M., 1997. "Textile Manufacturers' Market Valuation of Cotton Fiber Attributes," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(1), pages 185-195, July.
    14. Olmstead, Alan L. & Rhode, Paul W., 2003. "Hog-Round Marketing, Seed Quality, and Government Policy: Institutional Change in U.S. Cotton Production, 1920–1960," The Journal of Economic History, Cambridge University Press, vol. 63(2), pages 447-488, June.
    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. Brown, Jeff E. & Ethridge, Don E. & Hudson, Darren & Engels, Carlos, 1995. "An Automated Econometric Approach For Estimating And Reporting Daily Cotton Market Prices," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    2. Chen, Changping & Ethridge, Don E. & Fletcher, Stanley M., 1997. "Textile Manufacturers' Market Valuation Of Cotton Fiber Attributes," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(1), pages 1-11, July.
    3. Hudson, Darren & Jones, Tom, 2001. "Willingness to Plant Identity Preserved Crops: The Case of Mississippi Soybeans," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(3), pages 475-485, December.
    4. N. Koffi Amegbeto & Victor M. Manyong & Ousmane Coulibaly & Robert Asiedu, 2008. "Estimating market demand for fresh yam characteristics using contingent valuation: implications for crop breeding and production choices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 349-363, November.
    5. Larkin, Sherry L. & Sylvia, Gilbert, 1998. "Firm-Level Hedonic Analyses Of U.S. Produced Surimi: Implications For Processors And Resource Managers," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20916, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Ethridge, Don E. & Misra, Sukant K. & Fadiga, Mohamadou L., 2004. "Texas-Oklahoma Producer Cotton Market Summary: 2003/2004," Cotton Economics Research Institute CER Series 31246, Texas Tech University, Department of Agricultural and Applied Economics.
    7. Ahmad, Waseem & Ahmed, Tanvir & Ahmad, Bashir, 2019. "Pricing of mobile phone attributes at the retail level in a developing country: Hedonic analysis," Telecommunications Policy, Elsevier, vol. 43(4), pages 299-309.
    8. Richards, Timothy J. & Jeffrey, Scott R., 1995. "Hedonic Pricing of Dairy Bulls - An Alternative Index of Genetic Merit," Project Report Series 24035, University of Alberta, Department of Resource Economics and Environmental Sociology.
    9. Teuber, Ramona, 2009. "Café de Marcala - Honduras' GI Approach to Achieving Reputation in the Coffee Market," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1), pages 1-18.
    10. Nelson, Jeannie & Hoelscher, Kevin & Misra, Sukant K. & Ethridge, Don E., 2000. "Texas-Oklahoma Producer Cotton Market Summary: 1999/2000," Cotton Economics Research Institute CER Series 31242, Texas Tech University, Department of Agricultural and Applied Economics.
    11. Sanders, Dane & Wankhede, Pallavi & Misra, Sukant K. & Ethridge, Don E., 2003. "Texas-Oklahoma Producer Cotton Market Summary: 2002/2003," Cotton Economics Research Institute CER Series 31248, Texas Tech University, Department of Agricultural and Applied Economics.
    12. Gaetano Lisi, 2011. "The Hedonic Price Function in a Matching Model of Housing Market," Economics Bulletin, AccessEcon, vol. 31(3), pages 2347-2355.
    13. Ward, Jason & Nelson, Jeannie & Misra, Sukant K. & Ethridge, Don E., 2001. "Texas-Oklahoma Producer Cotton Market Summary: 2000/2001," Cotton Economics Research Institute CER Series 31249, Texas Tech University, Department of Agricultural and Applied Economics.
    14. Hoelscher, Kevin & Ethridge, Don E. & Misra, Sukant K., 1998. "Texas-Oklahoma Producer Cotton Market Summary: 1997/98," Cotton Economics Research Institute CER Series 31250, Texas Tech University, Department of Agricultural and Applied Economics.
    15. Lisi, Gaetano & Iacobini, Mauro, 2012. "Estimation of a Hedonic House Price Model with Bargaining: Evidence from the Italian Housing Market," MPRA Paper 66474, University Library of Munich, Germany.
    16. Dalton, Timothy J., 2004. "A household hedonic model of rice traits: economic values from farmers in West Africa," Agricultural Economics, Blackwell, vol. 31(2-3), pages 149-159, December.
    17. Kevin Hoefman & Aaron Bramson & Koen Schoors & Jan Ryckebusch, 2018. "The impact of functional and social value on the price of goods," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-12, November.
    18. Sanders, Dane & Misra, Sukant K. & Ethridge, Don E., 2002. "Texas - Oklahoma Producer Cotton Market Summary: 2001/2002," Cotton Economics Research Institute CER Series 31245, Texas Tech University, Department of Agricultural and Applied Economics.
    19. Mauro Iacobini & Gaetano Lisi, 2016. "Prezzi edonici delle caratteristiche abitative e analisi di regressione multipla: suggerimenti pratici per la stima," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2016(2), pages 5-42.
    20. Nolan, Elizabeth & Farrell, Terence & Ryan, Madeleine & Gibbon, Candice & Ahmadi-Esfahani, Fredoun Z., 2014. "Valuing quality attributes of Australian merino wool," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.

    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:aaea10:61854. 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: https://edirc.repec.org/data/aaeaaea.html .

    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.