Nonlinear impact of rain on foodgrain production in India

Abstract

Owing to a very high population and low land resources, the economic importance of crop production is very high in India. However, in the absence of adequate irrigation facility, crop production of the country largely depends on rainfall during monsoon months. I, therefore, analysed the impact of rainfall on crop production using the ARDL approach of Pesaran et al. (2001). As the impact of rain might have an asymmetric effect on crop production, I analysed such possibility using the nonlinear ARDL model proposed by Shin et al. (2013).

Keywords:

• foodgrain production
• ARDL
• cointegration
• nonlinear ARDL

JEL Classification:

• C50
• Q10