This paper analyses the dynamics of comparative advantage in India’s agricultural exports over the period 2001 to 2019. In order to analyze the pattern of export specialization, we use the revealed comparative advantage index, and its variant, the revealed symmetric comparative advantage index. We use the Markov transition matrix to examine the product mobility of comparative advantage. Our results show that the extent of agricultural trade openness has remained constant over time and that there has been little change in the composition of agricultural exports. Between 2017 and 2019, two products—semi- or wholly milled rice, and frozen shrimps and prawns—accounted for one-third of all exports. Analysis of the mobility of comparative advantage reveals little mobility of products from the lowest to the highest decile. There is a 65.8 percent probability that a product will stay in the first decile even after nearly two decades. A high degree of persistence of export specialization implies a much greater probability of starting and ending up in the highest decile. Policy should aim at diversification of the agricultural export basket through a product-specific focus that is based on export demand and the exploration of new markets.

This book collects OECD work that builds on recent contributions to the theory and empirics of comparative advantage, putting particular emphasis on the role policy can play in shaping trade.

Export structure is less diversified in low-income countries (LICs) and especially small states that face resource constraints and small economic size. This paper explores the potential linkages between export structure and economic growth and its volatility in LICs and small states, using a range of indices of export concentration differing in the coverage of industries. The empirical analysis finds that export diversification may promote economic growth and reduce economic volatility in these countries. Furthermore, the analysis demonstrates that the economic benefits of export diversification differ by country size and income level—there are bigger benefits for relatively larger and poorer countries within the group of LICs and small states.

Global Agricultural Trade And Developing Countries Explores The Outstanding Issues In Global Agricultural Trade Policy And Evolving World Production And Trade Patterns. This Book Presents Research Findings Based On A Series Of Commodity Studies Of Significant Economic Importance To Developing Countries. Setting The Stage With Background Chapters And Investigations Of Cross-Cutting Issues, The Authors Describe Trade And Domestic Policy Regimes Affecting Agricultural And Food Markets And Analyze Product Standards And Compliance Costs And Their Effects On Agricultural And Food Trade. They Then Examine The Impact And Effectiveness Of Preferences And Review The Evidence On Attempts To Decouple Agricultural Support From Agricultural Output. Finally, They Assess The Potential Gains From Global Liberalization In Agricultural And Food Markets, And Their Sensitivity To Various Assumptions. Within This Broad Context Of Global Agricultural Policies And Reforms, The Authors Then Present Detailed Studies Of Commodity Markets That Feature Distorted Policy Regimes Among Industrial And Developing Countries Or That Are Important Contributors To Exports Of Developing Countries. The Book Will Aid Policymakers And Researchers In Approaching Global Negotiations And In Evaluating Domestic Policies On Agriculture. (Published In Collaboration With World Bank )

Structural transformation depends not only on how much countries export but also on what they export and with whom they trade. This paper breaks new ground in analyzing India’s exports by the technological content, quality, sophistication, and complexity of the export basket. We identify five priority areas for policies: (1) reduction of trade costs, at and behind the border; (2) further liberalization of FDI including through simplification of regulations and procedures; (3) improving infrastructure including in urban areas to enhance manufacturing and services in cities; (4) preparing labor resources (skills) and markets (flexibility) for the technological progress that will shape jobs in the years ahead; and (5) creating an enabling environment for innovation and entrepreneurship to draw the economy into higher productivity activities.

This book provides different facets of India's agro and food processing industry in both organised and unorganised segments. It brings forth the topical issues having potential to accelerate the pace of growth in its employment, investment and productivity and strive for improving the global competitiveness. Using advanced quantitative techniques, it brings new evidences on inter-sectoral (agriculture-industry-services) employment and production linkages, contractual arrangements through Farmer Producer Companies, and subcontracting in the processed food sector. It also throws light on India's comparative advantage in export of primary and processed food products. With rising per capita income, urbanisation, and changing food habits of people, India is increasingly striving to improve productivity and competitiveness in agriculture and manufacturing. A concerted policy focus to accelerate private investment in food processing, largely viewed as a sunrise industry, is expected to contribute to large scale job creation and external trade not only in the manufacturing but also in the agricultural sector. Keeping this in mind, considerable insights are featured in the book at the industry and firm levels due to a significant bearing of technological, tariffs and non-tariff barriers and labour regulations on their trade intensity, employment and efficiency. Containing perspectives from the top agriculture and industry economists in the country, the book will be very useful to researchers, academicians, trade analysts and policy makers.

This third edition of a classic text continues to be an invaluable resource for all students and researchers in the fields of development economics and development studies. Reflecting recent developments, it includes new material on: national systems of innovation including the information technology boom in India, the ongoing impact of globalization and the continuing programmes of foreign aid across all developing countries.