PEARL Multidisciplinary Journal
Abstract
Following the recent non-impressive performance in the export volume of its cotton lint which in turn affected its foreign exchange earnings from the sector due to bear raid by USA and China price subsidies which caused imperfection in the global trade market, the researchers conceptualized the need to identify the magnitude and effects of the key drivers of India’s cotton lint exports using Engel-Granger two-step procedure. The study used dated data spanning from 1981 to 2013 which were sourced from FAO and UNCTAD databases. The results of the long-run and short-run models showed that India’s cotton lint export is stimulated mostly by the internal economic forces. However, export growth of the product was hindered by both the domestic and external forces. In this regard, in as much as the negative impact on India’s cotton lint due to distortion induced downward pressure on world prices caused by price subsidies offered by China and USA, inefficiencies and constraints in the domestic environment would preclude India from appropriately exploiting opportunities and adjusting to unexpected market developments in the short-run. Therefore, to revitaliz the gloomy export trade of India’s cotton lint, policy makers and various stakeholders in the industry should put in place measures to address domestic inefficiencies over which the country has some control compared to inefficiencies on the global market, thus placing the country in a better position to exploit market opportunities and adjust to unexpected developments in the shortest possible time.
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Keywords
Reposition, Export, Cotton Lint, India
Author Affiliations
Sadiq M S1, Singh I P2, Karunakaran N3, Lawal M4 and Danjuma B5
1 Department of Agricultural Economics, SKRAU, Bikaner, India
2 Department of Agricultural Economics, FUT, Minna, Nigeria
3 Department of Economics, EKNM Government College Elerithattu,
Kerela, India
4 Department of Agricultural Education, Federal College of Education, Katsina, Nigeria
5 Department of Economics, UNIJOS, Jos, Nigeria Sadiq, Mohammed Sanusi, Department of Agricultural Economics, SKRAU, Bikaner, India.
Dates
August 2018
Volume 4
No. 2
