Abstract
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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