Abstract

In this paper the author finds the link among the food grain production , gross state domestic product at current prices, net irrigated area, fertilizer used by states, cropping intensity, state fiscal deficit and state gross capital formation of 27 states in India from 1990-91 to 2015-16 using panel regression analysis, panel co-integration and vector error correction model. It finds positive link among food grain production, gross state domestic product at current prices, net irrigated area, NPK used by states, cropping intensity and negative relation with state fiscal deficit. Johansen-Fisher cointegration test confirmed four co-integrating equations. VECM is stable, not normally distributed and non-stationary with problem of autocorrelation. VECM states that there is significant long run association but in co-integrating equations change of food grain production and change of SDP have long run causality and they are moving towards equilibrium with slow speed of adjustment but change of net irrigated area and change of cropping intensity do not move to equilibrium level because they have no long run causality with the independent variables. On the other hand, there is short run causality running from state fiscal deficit to SDP and cropping intensity only but rest of the variables did not show any short run causality

Keywords: Food Grain Production, Panel Co-integration, Panel Vector Error Correction