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The Impact of Public Law 480 Imports on Prices and Domestic Supply of Cereals in India
Author(s) -
Mann Jitendar S.
Publication year - 1967
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237073
Subject(s) - agricultural economics , economics , business , international trade , international economics
This article quantifies the impact of imports of cereals under Public Law 480 on the prices and domestic supply of cereals in India. An econometric model encompassing six simultaneous equations is set up. An analytical framework for measuring the impact of P.L. 480 imports on prices and domestic supply is constructed. The statistical analysis supports the belief that the importation of cereals under P.L. 480 leads to lower prices and a decline in domestic supply but that the decrease in domestic supply is less than the quantity imported. Thus, there is a net addition to the quantity available for consumption, which is a significant contribution in a shortage economy.