IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v43y1992i2p231-242.html
   My bibliography  Save this article

Government Policies And Agricultural Supply Response: Paddy In Sri Lanka

Author

Listed:
  • P. J. Gunawardana
  • E. A. Oczkowski

Abstract

An aggregate analysis of supply response in the paddy (rice) sector of Sri Lanka during 1952‐87 is conducted to identify the impact of pricing policy, irrigation programmes, institutional credit and concessional sales on area, yield and overall supply. The focus of the estimation procedure is the selection of an appropriate functional form for regressions and on the price variable that best represents the price to which producers respond in making area and yield decisions. In the case of both area and yield, the econometric criteria favour the acceptance of log‐linear equations with the ratio of the guaranteed price of paddy to fertiliser price. On the basis of overall supply elasticity estimates, it is concluded that while pricing policy, irrigation programmes and institutional credit provide incentives to the expansion of paddy production, concessional sales of rice act as a disincentive.

Suggested Citation

  • P. J. Gunawardana & E. A. Oczkowski, 1992. "Government Policies And Agricultural Supply Response: Paddy In Sri Lanka," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 231-242, May.
  • Handle: RePEc:bla:jageco:v:43:y:1992:i:2:p:231-242
    DOI: 10.1111/j.1477-9552.1992.tb00217.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1477-9552.1992.tb00217.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1477-9552.1992.tb00217.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Havener, Robert D., 1981. "New Agricultural Development Issues Implications for Research and Training Institutions," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279344, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Richard E. Just, 1974. "An Investigation of the Importance of Risk in Farmers' Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 14-25.
    3. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January.
    4. Edirisinghe, Neville, 1987. "The food stamp scheme in Sri Lanka: costs, benefits, and options for modification," Research reports 58, International Food Policy Research Institute (IFPRI).
    5. Allan W. Gregory & Michael McAleer, 1983. "Testing Non-Nested Specifications of Money Demand for Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 16(4), pages 593-602, November.
    6. Gordon C. Rausser & D. Peter Stonehouse, 1978. "Public Intervention and Producer Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(5), pages 885-890.
    7. Bogahawatte, Cyril, 1983. "Simulating the Impact of the Changes in Wheat Flour Imports and World Price of Rice on the Supply and Demand for Rice in Sri Lanka," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 38(1), January.
    8. Timmer, C. Peter, 1975. "The Political Economy of Rice in Asia: Indonesia," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 14(3), pages 1-36.
    9. Timmer, C. Peter, 1975. "The Political Economy of Rice in Asia: A Methodological Introduction," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 14(3), pages 1-6.
    10. John P. Brennan, 1982. "The Representation Of Risk In Econometric Models Of Supply: Some Observations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(2), pages 151-156, August.
    11. Wesley, E. & Peterson, F., 1988. "Some lessons from the modelling of the Spanish rice market," Agricultural Economics, Blackwell, vol. 1(4), pages 341-354, January.
    12. John J. Beggs, 1988. "Diagnostic Testing in Applied Econometrics," The Economic Record, The Economic Society of Australia, vol. 64(2), pages 81-101, June.
    13. Gordon Gemmill, 1978. "Estimating and forecasting agricultural supply from times-series: A comparison of direct and indirect methods," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 5(2), pages 175-191.
    14. 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.
    15. Krishna, Raj & Chhibber, Ajay, 1983. "Policy modeling of a dual grain market: the case of wheat in India," Research reports 38, International Food Policy Research Institute (IFPRI).
    16. Brennan, John P., 1982. "The Representation Of Risk In Econometric Models Of Supply: Some Observations," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(2), pages 1-6, August.
    17. Timmer, C. Peter, 1975. "The Political Economy of Rice in Asia: Lessons and Implications," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 14(4), pages 1-15.
    18. Gavan, James D. & Sri Chandrasekera, Indrani, 1979. "The impact of public foodgrain distribution on food consumption and welfare in Sri Lanka:," Research reports 13, International Food Policy Research Institute (IFPRI).
    19. repec:bla:ecorec:v:64:y:1988:i:185:p:81-101 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chatura Sewwandi Wijetunga, 2016. "Rice production structures in Sri Lanka: The normalized translog profit function approach," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(2), pages 21-35, February.
    2. Najafi, Bahaeddin & Bakhshoodeh, Mohamad, 2002. "Effectiveness of Government Protective Policies on Rice Production in Iran," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24922, European Association of Agricultural Economists.
    3. 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.
    4. Bingxin Yu & Shenggen Fan, 2011. "Rice production response in Cambodia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 437-450, May.
    5. Wijetunga, Chatura Sewwandi, 2023. "Rice Production Structures in Sri Lanka: The Normalized Translog Profit Function Approach," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 6(02), January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McAleer, Michael, 1995. "The significance of testing empirical non-nested models," Journal of Econometrics, Elsevier, vol. 67(1), pages 149-171, May.
    2. Wall, Charles A. & Fisher, Brian S., 1988. "Supply Response and the Theory of Production and Profit Functions," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-22, December.
    3. Van Kooten, G. C. & Spriggs, John & Schmitz, Andrew, 1989. "The Impact of Canadian Commodity Stabilization Programs on Risk Reduction and the Supply of Agricultural Commodities," Working Papers 244037, Agriculture and Agri-Food Canada.
    4. Barichello, Richard R., 1988. "The Political Economy of Agricultural Policy in Asia : The Case of Indonesia," 1988 Conference, August 24-31, 1988, Buenos Aires, Argentina 183110, International Association of Agricultural Economists.
    5. Peter Timmer, 2018. "Pro-poor growth in Indonesia: Challenging the pessimism of Myrdal's Asian Drama," WIDER Working Paper Series wp-2018-103, World Institute for Development Economic Research (UNU-WIDER).
    6. Neil French Collier & Jeffrey Sayer & Agni Klintuni Boedhihartono & Jan Hanspach & Dave Abson & Joern Fischer, 2018. "System Properties Determine Food Security and Biodiversity Outcomes at Landscape Scale: A Case Study from West Flores, Indonesia," Land, MDPI, vol. 7(1), pages 1-19, March.
    7. Harold Alderman & Ugo Gentilini & Ruslan Yemtsov, 2018. "The 1.5 Billion People Question," World Bank Publications - Books, The World Bank Group, number 27907.
    8. Belesky, Paul, 2016. "Rice, politics and power: the political economy of food insecurity in East Asia," Thesis Commons hn264, Center for Open Science.
    9. Jeon, Jong-Pyeong, 1989. "The impacts of policy alternatives and foreign demand fluctuations on the US rice market," ISU General Staff Papers 1989010108000010204, Iowa State University, Department of Economics.
    10. Peter Timmer, 2018. "Pro-poor growth in Indonesia: Challenging the pessimism of Myrdal’s Asian Drama," WIDER Working Paper Series 103, World Institute for Development Economic Research (UNU-WIDER).
    11. Durevall, Dick & van der Weide, Roy, 2014. "Importing High Food Prices by Exporting: Rice Prices in Lao PDR," Working Papers in Economics 607, University of Gothenburg, Department of Economics.
    12. Dick Durevall & Roy Weide, 2017. "Importing High Food Prices by Exporting: Rice Prices in Lao PDR," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 164-181, February.
    13. Rausser, Gordon C. & Chalfant, James A. & Stamoulis, Kostas G., 1985. "Instability in agricultural markets: the U.S. experience," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5zp3w60h, Department of Agricultural & Resource Economics, UC Berkeley.
    14. Wann, Joyce Jong-Wen & Fletcher, Stanley M., 1985. "Alternative Representations Of Risk In Econometric Models Of Supply: A Case Of Soybeans In The Southern Region," 1985 Annual Meeting, August 4-7, Ames, Iowa 278550, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Rose Tirtalistyani & Murtiningrum Murtiningrum & Rameshwar S. Kanwar, 2022. "Indonesia Rice Irrigation System: Time for Innovation," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    16. Timmer, Peter C. & Hastuti, Hastuti & Sumarto, Sudarno, 2016. "Evolution and Implementation of the Rastra Program in Indonesia," MPRA Paper 81018, University Library of Munich, Germany, revised 30 Sep 2017.
    17. Agriculture and Trade Analysis Division, 1989. "Agricultural Policy, Trade, Economic Growth, And Development," Staff Reports 278196, United States Department of Agriculture, Economic Research Service.
    18. C. Peter Timmer, 2020. "Asia's Journey to Prosperity: Policy, Market, and Technology over 50 Years by Asian Development Bank, Manila, ADB, 2020, xxix + 583 pp," The Developing Economies, Institute of Developing Economies, vol. 58(3), pages 254-257, September.
    19. Burton, Diana M. & Love, H. Alan, 1996. "A Review of Alternative Expectations Regimes in Commodity Markets: Specification, Estimation, and Hypothesis Testing Using Structural Models," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(2), pages 213-231, October.
    20. Just, Richard E., 1992. "Discovering Microeconomic Relationships in Agriculture," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146530, Australian Agricultural and Resource Economics Society.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:43:y:1992:i:2:p:231-242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.