Trade dynamics and export supply function of Indian groundnut
TRADE DYNAMICS AND EXPORT SUPPLY FUNCTION OF INDIAN GROUNDNUT
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Authors
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MURLIDHAR MEENA
ICAR-Directorate of Groundnut Research, Junagadh-362 001, Gujarat
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K A KHUNT
ICAR-Directorate of Groundnut Research, Junagadh-362 001, Gujarat
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H N MEENA
ICAR-Directorate of Groundnut Research, Junagadh-362 001, Gujarat
Keywords:
Cointegration, Direction of trade, Groundnut export, Markov chain analysis, Vector Error Correction ModelAbstract
India is the leading groundnut exporter to world market. Direction of trade has changed over the period. Sphere of groundnut export has narrowed down from European nations during 1995-96 to Asian markets during 2014-15, with lost shares in UK, Netherland, Egypt, USA and Russia to Vietnam, Thailand, Pakistan, China, Ukraine and UAE. Indonesia was identified as highest loyal market followed by Malaysia. To identify the factors influencing groundnut export, Cointegration and Vector Error Correction Model were used. Export was found to increase significantly with export price and exchange rate and decrease significantly with increase in domestic price and increase in population. Speed of adjustment indicates the adjustment to the long-run equilibrium from short run shocks. Result highlights to target European market, the largest importer of groundnut in world.
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References
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