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An Analysis of Poultry Investment Function: A Case Study of Lesotho

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  • H M Bello
  • R T Nokotjoa
  • Ch Paramaiah
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    Abstract

    This paper examines the long-run relationship between investment and the response variables in poultry production in Lesotho. The paper uses data obtained from secondary sources for the period 2000-2005, on poultry production in Maseru, Mohale’s Hoek and Leribe districts to estimate poultry investment function for Lesotho. Investment, represented by the number of chicks produced, is modeled as a function of interest rate, income, uncertainty, chicken meat imports and seasonality. The results reveal long-run convergence of the dependent and independent variables. They highlight that all the independent variables are very important decision variables in investment in poultry production in Lesotho. Results also indicate that chicken meat imports contribute negatively to gross investment in poultry production and the income of farmers is the best variable to explain investment in poultry production.

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    Bibliographic Info

    Article provided by IUP Publications in its journal The IUP Journal of Agricultural Economics.

    Volume (Year): VI (2009)
    Issue (Month): 3-4 (July-October)
    Pages: 56-65

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    Handle: RePEc:icf:icfjag:v:06:y:2009:i:3-4:p:56-65

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