A Dynamic Relationship Between Production and Consumption of Rice in Bangladesh, China and India

Abstract

This study investigates the dynamic link between rice production and consumption in Bangladesh, China and India using a panel data methodology. The study's time frame is from 1971 to 2022, and the IndexMundi data set is employed. The link between rice production and consumption is examined in this study using panel cointegration analysis. The impulse response functions (IRFs) are also used to explore the causal relationships between production and consumption, both in the short- and long-term. According to the panel cointegration analysis, there is long-run co-movement among the factors according to the statistically significant and positive long-run equilibrium connection between production and consumption. The IRFs demonstrate that the consumption variable's shock approaches equilibrium within a year to 1.5 years from the initial shock.