The impact of macroeconomic factors on food price inflation: an evidence from India
Abstract The present study investigates the impact of macroeconomic factors on food price inflation in India utilizing the monthly time series during January 2006–March 2019. The long-run relationship is confirmed among the variables using the ARDL bounds testing approach to cointegration. The coeff...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2022-06-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-022-00127-7 |
| _version_ | 1797669551673966592 |
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| author | Asharani Samal Mallesh Ummalla Phanindra Goyari |
| author_facet | Asharani Samal Mallesh Ummalla Phanindra Goyari |
| author_sort | Asharani Samal |
| collection | DOAJ |
| description | Abstract The present study investigates the impact of macroeconomic factors on food price inflation in India utilizing the monthly time series during January 2006–March 2019. The long-run relationship is confirmed among the variables using the ARDL bounds testing approach to cointegration. The coefficients of long-run estimates show that per capita income, money supply, global food prices, and agricultural wages are positively and significantly impacted food price inflation in both the short and long-run. While food grain availability has a negative and significant impact on food price inflation in both the short-run and long run. Further, the short-run estimates revealed that real exchange rate positively impacts food price inflation. However, the coefficient is insignificant in the short-run. The Granger causality estimates show that a short-run bidirectional causality is confirmed among per capita income, the exchange rate, per capita net availability of food grain and food price inflation. Further, there is evidence of unidirectional causality running from global food prices to food price inflation. However, there is no causal relationship running from money supply and agricultural wages to food price inflation in the short-run. |
| first_indexed | 2024-03-11T20:46:03Z |
| format | Article |
| id | doaj.art-1845992afc99467a829cfdaf5d492720 |
| institution | Directory Open Access Journal |
| issn | 2314-7210 |
| language | English |
| last_indexed | 2024-03-11T20:46:03Z |
| publishDate | 2022-06-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj.art-1845992afc99467a829cfdaf5d4927202023-10-01T11:16:50ZengSpringerOpenFuture Business Journal2314-72102022-06-018111410.1186/s43093-022-00127-7The impact of macroeconomic factors on food price inflation: an evidence from IndiaAsharani Samal0Mallesh Ummalla1Phanindra Goyari2School of Economics, University of HyderabadSchool of Business, Woxsen UniversitySchool of Economics, University of HyderabadAbstract The present study investigates the impact of macroeconomic factors on food price inflation in India utilizing the monthly time series during January 2006–March 2019. The long-run relationship is confirmed among the variables using the ARDL bounds testing approach to cointegration. The coefficients of long-run estimates show that per capita income, money supply, global food prices, and agricultural wages are positively and significantly impacted food price inflation in both the short and long-run. While food grain availability has a negative and significant impact on food price inflation in both the short-run and long run. Further, the short-run estimates revealed that real exchange rate positively impacts food price inflation. However, the coefficient is insignificant in the short-run. The Granger causality estimates show that a short-run bidirectional causality is confirmed among per capita income, the exchange rate, per capita net availability of food grain and food price inflation. Further, there is evidence of unidirectional causality running from global food prices to food price inflation. However, there is no causal relationship running from money supply and agricultural wages to food price inflation in the short-run.https://doi.org/10.1186/s43093-022-00127-7Food price inflationMacroeconomic factorsARDL bounds testing approachCausality test |
| spellingShingle | Asharani Samal Mallesh Ummalla Phanindra Goyari The impact of macroeconomic factors on food price inflation: an evidence from India Future Business Journal Food price inflation Macroeconomic factors ARDL bounds testing approach Causality test |
| title | The impact of macroeconomic factors on food price inflation: an evidence from India |
| title_full | The impact of macroeconomic factors on food price inflation: an evidence from India |
| title_fullStr | The impact of macroeconomic factors on food price inflation: an evidence from India |
| title_full_unstemmed | The impact of macroeconomic factors on food price inflation: an evidence from India |
| title_short | The impact of macroeconomic factors on food price inflation: an evidence from India |
| title_sort | impact of macroeconomic factors on food price inflation an evidence from india |
| topic | Food price inflation Macroeconomic factors ARDL bounds testing approach Causality test |
| url | https://doi.org/10.1186/s43093-022-00127-7 |
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