Indian Journal of Economics and Development: Forthcoming Issue

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Casualty between Cotton Area and Sesamum Area in Andhra Pradesh StateAn ARDL Bounds Testing Approach

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Pannala Divakar Reddy, T.M. Dinesh, Vijay Kumar N. and Safiyanu Umar Maiadua

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This paper empirically investigates cotton area casualty between sesamum for Andhra Pradesh by using the annually time series data during the period 1995-2012. Research variables are sesamum area, farm harvest price of cotton, farm harvest price of sesamum. Long-run and short-run elasticities of variables were examined using the bounds testing cointegration. The autoregressive distributed lag model (ARDL) demonstrates that there is a long-term relationship between the variables like cotton area and sesamum area.CUSUM and CUSUMSQ stability tests on hypothesized cotton area function were also implemented.

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