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Yield Response In Pakistan Agriculture: A Cointegration Approach

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  • Mushtaq, Khalid
  • Dawson, P.J.
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    Abstract

    We seek to quantify and evaluate the supply (yield) response of wheat and cotton in Pakistan using cointegration analysis and annual data for 1960-96. The results reveal that wheat supply is significantly influenced by the prices of wheat, cotton, and fertilizer, the percentage area under high yielding wheat varieties, and the rabi season (winter) water availability. The cotton supply is found to be significantly influenced by the real cotton price, the real fertilizer price, and in the irrigated area. The wheat supply was found to be inelastic both in the short- and long-run. However, cotton supply was elastic in the long-run.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25931.

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    Date of creation: 2003
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    Handle: RePEc:ags:iaae03:25931

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    Related research

    Keywords: Pakistan; supply response; wheat; cotton; cointegration.; Crop Production/Industries;

    References

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    1. Perron, P., 1994. "Further Evidence on Breaking Trend Functions in Macroeconomic Variables," Cahiers de recherche 9421, Centre interuniversitaire de recherche en ├ęconomie quantitative, CIREQ.
    2. Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
    3. Mushtaq, Khalid & Dawson, P. J., 2002. "Acreage response in Pakistan: a co-integration approach," Agricultural Economics, Blackwell, vol. 27(2), pages 111-121, August.
    4. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
    5. Hallam, David & Zanoli, Raffaele, 1993. "Error Correction Models and Agricultural Supply Response," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(2), pages 151-66.
    6. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    7. Johansen, Soren, 1992. "Determination of Cointegration Rank in the Presence of a Linear Trend," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 383-97, August.
    8. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
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    Cited by:
    1. Yu, Bingxin & Fan, Shenggen, 2009. "Rice production responses in Cambodia:," IFPRI discussion papers 939, International Food Policy Research Institute (IFPRI).
    2. Zulfiqar, Farhad, 2010. "Estimation of Wheat Yield Response under different Economic, Location and Climatic Conditions in Punjab," MPRA Paper 26503, University Library of Munich, Germany.
    3. Roman Keeney & Thomas W. Hertel, 2008. "U.S. Market Potential For Dried Distillers Grain With Solubles," Working Papers 08-13, Purdue University, College of Agriculture, Department of Agricultural Economics.

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