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Estimation of dynamic maize supply response in Zambia

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  • Foster, Kenneth A.
  • Mwanaumo, Anthony

Abstract

Increased attention on government pricing policies among African nations leads directly to a need for information about producer responses to price adjustments. This is especially true in the case of Zambian maize production. Maize is the most important crop grown in Zambia. It accounts for more than 80% of the value of marketed food crops, is heavily relied on for subsistence consumption, and is a staple food in the diet of all Zambian citizens. This paper analyzes the aggregate price response of maize supply in Zambia using a dynamic regression analysis. As a result, short, intermediate and long-run multipliers/elasticities are measured which can be used to analyze the effect of future price policy changes. It was found that a second-order rational distributed lag model best fits the available data. Estimates of short-run elasticities of supply for maize and fertilizer prices are 0.54 and - 0.48, respectively. The corresponding estimated long-run elasticities are 1.57 and -1.44.

Suggested Citation

  • Foster, Kenneth A. & Mwanaumo, Anthony, 1995. "Estimation of dynamic maize supply response in Zambia," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 12(1), April.
  • Handle: RePEc:ags:iaaeaj:173569
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    Citations

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    Cited by:

    1. Mergos, G. J. & Stoforos, Ch. E., 1997. "Fertilizer demand in Greece," Agricultural Economics, Blackwell, vol. 16(3), pages 227-235, August.
    2. Kimhi, Ayal, 2003. "Plot Size And Maize Productivity In Zambia: The Inverse Relationship Re-Examined," Discussion Papers 14980, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    3. Aktas, Erkan, 2006. "Çukurova Bölgesi’nde Pamuk Arz Duyarlılığının Tahmini Üzerine Bir Çalışma
      [A Study on the Estimation of Supply Response of Cotton in Cukurova Region]
      ," MPRA Paper 8648, University Library of Munich, Germany.
    4. Kimhi, Ayal & Chiwele, Dennis K., 2000. "Barriers For Development In Zambian Small- And Medium-Size Farms: Evidence From Micro-Data," 2000 Annual meeting, July 30-August 2, Tampa, FL 21877, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Frechette, Darren L., 1999. "The Supply Of Storage Under Heterogeneous Expectations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(03), December.
    6. Mergos, George J. & Stoforos, Ch.E., 1997. "Fertilizer demand in Greece," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 16(3), August.
    7. Gallagher, Paul W., 2012. "Trade Policy Options for a Food-Security Commodity in Southern Africa: A Case Study of Maize in Zambia," Staff General Research Papers Archive 34830, Iowa State University, Department of Economics.
    8. Aktas, Erkan & Yurdakul, Oğuz, 2005. "Destekleme ve Teknoloji Politikalarının Çukurova Bölgesinde Mısır Tarımı Üzerine Etkisi
      [Effects of Agricultural Support and Technology Policies on Corn Farming in Çukurova Region]
      ," MPRA Paper 8645, University Library of Munich, Germany.
    9. Alcock, K.T., 2015. "The current status of GM/non-GM canola coexistence in Australian broadacre farming systems and likely future challenges," GMCC-15: Seventh GMCC, November 17-20, 2015, Amsterdam, the Netherlands 211638, International Conference on Coexistence between Genetically Modified (GM) and non-GM based Agricultural Supply Chains (GMCC).
    10. Cutts, Michela & Hassan, Rashid M., 2003. "An Econometric Model Of The Sadc Maize Sector," 2003 Annual Conference, October 2-3, 2003, Pretoria, South Africa 19075, Agricultural Economic Association of South Africa (AEASA).
    11. 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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