Agriculture, Manufacturing and Economic Growth in India: A Co-integration Analysis

Baig, Imran Ali; Ali, Md. Safdar; Salam, Abdus; Khan, Sana

doi:10.31014/aior.1992.03.03.255

Cited by 4 publications

(2 citation statements)

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“…According to the study's finding, agricultural production, inflation, government spending, and gross fixed capital creation all have a beneficial impact on economic growth. Baig et al (2020b, a) use the ARDL technique to analyse the effects of agricultural growth and manufacturing on economic growth in India, utilising data from 1966 to 2016. The findings of the study demonstrate a one-way causality that extends from industry and economic growth to agricultural expansion.…”

Section: Literature Reviewmentioning

confidence: 99%

Asymmetric effects of cereal crops on agricultural economic growth: a case study of India

et al. 2021

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Section: Literature Reviewmentioning

confidence: 99%

Asymmetric effects of cereal crops on agricultural economic growth: a case study of India

et al. 2021

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“…However, according to Coulibaly et al (2020), the primary climatic factors that have a negative impact on rice productivity are global temperature and natural disasters (drought and floods). Investigating the effects of climatic and technical factors on wheat and rice productivity is of the highest importance because approximately 60% of India's workforce depends on the agriculture sector and its allied businesses for their livelihoods (Baig et al, 2021). Changes in climatic components, including temperature (AT), CO2, and rainfall patterns significantly impact agriculture production (Abbas et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

How agricultural technologies and climatic factors affect India's crop production? A roadmap towards sustainable agriculture

Baig

Irfan

Aarif

et al. 2023

Sustainable Development

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This study aims to explore the long‐term (LT) and short‐term (ST) effects of meteorological factors and technological advancement on major crop production, that is, wheat, and rice, in India from 1990 to 2020. For this purpose, the authors also used other important controlled variables, that is, agriculture employment (AE), agricultural credit (AC), and cultivated land (AUR/AUW). For the estimation of data series, the study employed robust econometric techniques, such as the ARDL, FMOLS, and CCR framework. Empirical results reveal the long‐term relationship among meteorological factors, agricultural technologies, and major crop production (wheat and rice). In the case of meteorological factors, rainfall (RF) and carbon emission (CO2) have a positive and negative impact on wheat and rice production, while the mean temperature is negatively related to rice production and positively related to wheat production. Whereas agricultural technologies, such as fertilizer usage and farm machinery, improve wheat and rice crop production. The long‐term (LT) estimated findings are confirmed by econometric techniques such as FMOLS and CCR. The government should adopt necessary measures to achieve sustainable production and develop resilient hybrid seeds of rice and wheat that are well‐suited to agro‐climatic conditions in order to mitigate environmental degradation.

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Does Twin Deficit Hypothesis Exist in India? A Structural Break Co-integration Analysis

et al. 2023

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The primary focus of this study is to examine the long-term and short-term impact of fiscal deficit (FD) on the current account deficit (CAD) in India over the period of 1980 to 2021 in the presence of inflation and exchange rate. For the estimation of data series, the study employed autoregressive distributed lag (ARDL) co-integration test and Gregory Hansen (GH) co-integration test with endogenous structural break. The empirical results from ARDL bounds tests fail to provide a long-run relationship for the variables. The threshold co-integration test (GH) estimation suggests a strong evidence of a co-integration relationship for the variables and the break year is found in 2005. Thus, the findings validate the twin deficit hypothesis in the long-run as the FD has a positive significant effect on a CAD in India. Similarly, the long-run estimates of inflation have a positive significant effect on the CAD. It implies that an increase in rate of inflation distorts the CAD in the long-run. Consequently, the government of India should control the price hike and make macroeconomic situations favourable for domestic tradable sectors. The results from the Granger causality technique show bidirectional causality between FD and CAD implies the twin deficit in India. Based on the empirical findings, it may be argued that the Central Bank of India should try to reduce the prolonged CADs and retain stability in the domestic currency.

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Agriculture, Manufacturing and Economic Growth in India: A Co-integration Analysis

Abstract: The Journal of Economics and Business is an Open Access publication. It may be read, copied, and distributed free of charge according to the conditions of the Creative Commons Attribution 4.0 International license.

Cited by 4 publications

References 14 publications

Asymmetric effects of cereal crops on agricultural economic growth: a case study of India

Asymmetric effects of cereal crops on agricultural economic growth: a case study of India

How agricultural technologies and climatic factors affect India's crop production? A roadmap towards sustainable agriculture

Does Twin Deficit Hypothesis Exist in India? A Structural Break Co-integration Analysis

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