An Empirical Analysis of Comparative Advantage in India’s Agricultural Export: Post WTO Era

By : Balaji , N.A. Khan

Page No: 388-400

Abstract
Current developments in the global trade scenario and corresponding alterations in India’s foreign trade policies depicted far-reaching implications for agricultural sector in general and agricultural exports in particular. The present study has ascertained the changes in comparative advantage status of India’s major agricultural exports during the PreWTO (1980–94) and Post WTO period (1995 to 2012).The RCAs in export commodity and agriculture products were higher than unity and RSCAs were positive and higher except wheat. Rest of the commodities RCA value has declined in post WTO compare to pre WTO period, i.e., 1980–84 compared to 1995–2012 indicating declined comparative advantage in these crops. The RSCA among all agricultural commodities during the study period suggested that India is gaining specialization in agriculture export commodities. A contrasting result from RSCA to RCA is that the mean value of RSCA export commodity as coffee green, oil of vegetable, sugar, tobacco and wheat for the entire period under study was below unity. India has, by and large, comparative disadvantage in the export of crops despite advantage in export of the agricultural commodities during the period of post WTO.

Authors :
Balaji : Research Scholar, School Of Economics, University of Hyderabad, Hyderabad - 500 046.
N.A. Khan : Associated Professor, School Of Economics, University of Hyderabad, Hyderabad - 500 046.