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Measuring the supply response function of tobacco in Zimbabwe

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  • Leaver, Rosemary

Abstract

This paper presents an estimate of the price elasticity of supply for tobacco output in Zimbabwe using an adapted Nerlovian model. The results indicate a short-run elasticity of +0.34 and a long-run elasticity of +0.81, suggesting that tobacco farmers are highly unresponsive to price changes. These estimates are similar to those obtained for tobacco in supply response studies conducted in other developing African countries.

Suggested Citation

  • Leaver, Rosemary, 2004. "Measuring the supply response function of tobacco in Zimbabwe," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(1), pages 1-19, March.
    • Handle: RePEc:ags:agreko:9473
    DOI: 10.22004/ag.econ.9473
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    References listed on IDEAS

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    1. Townsend, Robert & Thirtle, Colin, 1997. "Dynamic Acreage Response: An Error Correlation Model for Maize and Tobacco in Zimbabwe," 1997 Occasional Paper Series No. 7 198059, International Association of Agricultural Economists.
    2. Mamingi, Nlandu, 1997. "The impact of prices and macroeconomic policies on agricultural supply: a synthesis of available results," Agricultural Economics, Blackwell, vol. 16(1), pages 17-34, March.
    3. Askari, Hossein & Cummings, John Thomas, 1977. "Estimating Agricultural Supply Response with the Nerlove Model: A Survey," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 257-292, June.
    4. J.C. Flinn & Warren F. Musgrave, 1967. "Development And Analysis Of Input‐Output Relations For Irrigation Water," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 11(1), pages 1-19, June.
    5. Nlandu Mamingi, 1997. "The impact of prices and macroeconomic policies on agricultural supply: a synthesis of available results," Agricultural Economics, International Association of Agricultural Economists, vol. 16(1), pages 17-34, March.
    6. Braulke, Michael, 1982. "A Note on the Nerlove Model of Agricultural Supply Response," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(1), pages 241-244, February.
    7. S. Pandey & Roley R. Piggott & T. Gordon MacAulay, 1982. "The Elasticity Of Aggregate Australian Agricultural Supply: Estimates And Policy Implications," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(3), pages 202-219, December.
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    Cited by:

    1. Magrini, Emiliano & Morales-Opazo, Cristian & Balie, Jean, 2014. "Supply response along the value chain in selected SSA countries: the case of grains," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197193, International Agricultural Trade Research Consortium.
    2. Müller, Marc & Sanfo, Safietou & Laube, Wolfram, 2013. "Impact of Changing Seasonal Rainfall Patterns on Rainy-Season Crop Production in the Guinea Savannah of West Africa," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151208, Agricultural and Applied Economics Association.
    3. Johnson, Michael E. & Takeshima, Hiroyuki & Gyimah-Brempong, Kwabena, 2013. "Assessing the potential and policy alternatives for achieving rice competitiveness and growth in Nigeria:," IFPRI discussion papers 1301, International Food Policy Research Institute (IFPRI).
    4. Müller, Marc & Sanfo, Safietou & Laube, Wolfram, 2013. "Impact of Changing Seasonal Rainfall Patterns on Rainy-Season Crop Production in the Guinea Savannah of West Africa," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150412, Agricultural and Applied Economics Association.
    5. Henry De-Graft Acquah, 2013. "The Effect of Price and Climatic Variables on Maize Supply in Ghana," Journal of Social and Development Sciences, AMH International, vol. 4(1), pages 24-31.
    6. Riaz, Bakhtawar & Ali, Shahid & Jan, Dawood, 2014. "Acreage Response Analysis Of Maize Growers In Khyber Pakhtunkhwa, Pakistan," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(3), pages 1-12, July.
    7. Harshana PVS, 2019. "Analysis of Satisfaction of Small Cucumber Contract Famers in Predominantly Agriculture areas in Sri Lanka," Annals of Social Sciences & Management studies, Juniper Publishers Inc., vol. 2(4), pages 92-99, January.
    8. Anbes Tenaye, 2020. "New Evidence Using a Dynamic Panel Data Approach: Cereal Supply Response in Smallholder Agriculture in Ethiopia," Economies, MDPI, vol. 8(3), pages 1-24, July.
    9. Ngarava, Saul, 2020. "Impact of the Fast Track Land Reform Programme (FTLRP) on agricultural production: A tobacco success story in Zimbabwe?," Land Use Policy, Elsevier, vol. 99(C).
    10. D. V. Dlamini* & S. G. Dlamini & D. Akelrele & Q. Jele, 2019. "The Influence of Price and Non-Price Factors on Acreage Response of Maize in Eswatini," Journal of Agriculture and Crops, Academic Research Publishing Group, vol. 5(3), pages 38-42, 03-2019.
    11. Shengying Zhai & Qihui Chen & Wenxin Wang, 2019. "What Drives Green Fodder Supply in China?—A Nerlovian Analysis with LASSO Variable Selection," Sustainability, MDPI, vol. 11(23), pages 1-17, November.

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