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Econometrics Assignment
Econometrics Assignment
Submitted by
Sakthi B
20/UECA/006
1. ABSTRACT
India is the world's second-largest producer of rice, and the largest exporter of rice in the
world. It is generally considered that rice production was associated with massive limiting
factors, such as variety, climate, terrain, and soil properties. This study tries to identify the
influence of selected climatic variables of average annual mean temperature and precipitation
(independent variables) on rice production (dependent variable). This study is pertaining to
India from 2010 to 2020. Regression analysis is used to study the relationship between
variables and ANOVA is used to study whether the relationship is significant or not. The
study shows that temperature and rice production have a negative relationship and there is
positive relationship between precipitation and rice production.
2. INTRODUCTION
Rice is one of the most important food crops and feeds more than 60 per cent population of
India. Rice crop needs a hot and humid climate. It is best suited to regions which have high
humidity, prolonged sunshine and an assured supply of water. The average temperature
required throughout the life period of the crop ranges from 21 º Celsius to 37º Celsius.
Maximum temp which the crop can tolerate 40º Celsius to 42º Celsius. Rice is mainly grown
in rain-fed areas that receive heavy annual rainfall of more than 100 cm. As a complex carb,
rice is the primary source of energy for more than half of the world's people. Depending on
the strain of rice, it can contain respective amounts of fibre, protein, vitamin B, iron and
manganese. It plays an important role against malnutrition.
Given the details, through this study I have tried to analyse how the changing climatic
conditions has affected rice production in India from 2010 to 2020.
“Rice is highly vulnerable to climate change, so factors such as sea level, salinity and
temperature rises will affect rice production,” says agricultural consultant and researcher
Wyn Ellis. Indian agriculture scientists have found that rising temperature will adversely hit
rice productivity in the country. I have tried to check the reliability of this finding through my
study by taking climatic variables such as precipitation (in millimetre) and temperature (in
Celsius) to understand its influence in the Rice Production Volume (in million metric tons) in
India over the last few years, that is from 2010 to 2020.
I choose this topic to understand the impact of climate change in food production and to make
the calculations easier I took specifically the impact of average annual mean temperature and
average annual precipitation on Rice Production Volume in India.
This study’s research scope is that it helps in empirically proving the effects of temperature
and precipitation on rice production, forecast or estimate future possibilities, formulate
economic policies to regulate the impact.
5. RESEARCH METHODOLOGY
Variables considered: The variables considered are Rice Production Volume, Observed
Average Annual Mean Temperature, Observed Average Annual Precipitation of India.
Sources of Data: The data is collected by using secondary sources relating to the selected
variables. Annual data is collected for a period of 11 years i.e., from 2010 to 2020.
Model: In this study classical linear regression model is used for data analysis. The model is
presented as follows,
Rice Production Volume = β0 + β1 (Observed average annual mean temperature) +
β2(Observed average annual precipitation).
6. EMPIRICAL ANALYSIS
Regression Statistics
Multiple R 0.384847913
R Square 0.148107916
Adjusted R Square -0.064865105
Standard Error 8.780985097
Number of Observations 11
ANOVA
Source df SS MS F Significance
F
Regression 2 107.2432967 53.6216483 0.6954304 0.52666969
5 1 6
Residual 8 616.8455942 77.1056992
8
Total 10 724.0888909
7. INTERPRETATION
8. CONCLUSION
I have tried to understand the relationship of Rice Production Volume with observed values
of average annual mean temperature and average annual precipitation in India from 2010 to
2020. The findings are that there is no statistically significant relationship between the
variables, which is understood with the help of ANOVA and with the help of regression
model I can verify the statement - Indian agriculture scientists have found that rising
temperature will adversely hit rice productivity in the country. According to me based on this
study the rising temperature will hit the rice productivity in the country. I cannot verify
whether it will hit adversely or not, but I believe that we can rely to the statement or finding
given by the Indian agriculture scientists.
With this study, I was able to understand the use of Microsoft Excel for data analysis, the
procedure of using the data analysis option in it and analyse and interpret the finding.
The limitations of this study are that the model is not clearly specified and this sample does
not represent the total population which is evident from the very less value of R square.
9. REFERENCES
https://climateknowledgeportal.worldbank.org/country/india/climate-data-historical
Data of Observed Average Annual Precipitation and Observed Average Annual Mean
Temperature of India from 2010 to 2020
https://www.statista.com/statistics/1140236/india-production-volume-of-rice/
Production volume of rice in India from financial year 2010 to 2020.