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Supply Response in the Northeastern Fresh Tomato Market: Cointegration and Error Correction Analysis

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  • Weliwita, Ananda
  • Govindasamy, Ramu

Abstract

This paper reexamines supply response in the Northeastern fresh tomato market during the 1949–94 period by employing cointegration and error correction technique. It tests whether there has been a long-run equilibrium relationship between Northeastern production and a set of price and nonprice factors that influence it. Findings suggest that wage rate, imports from competing regions, and urban pressure have had significant negative impacts on regional production. The negative relationship between price and production may have resulted from the strong negative effects exerted by the nonprice factors.

Suggested Citation

  • Weliwita, Ananda & Govindasamy, Ramu, 1997. "Supply Response in the Northeastern Fresh Tomato Market: Cointegration and Error Correction Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 26(2), pages 247-255, October.
    • Handle: RePEc:cup:agrerw:v:26:y:1997:i:02:p:247-255_00
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    Cited by:

    1. Yoon, Jongyeol & Brown, Scott, "undated". "Examination of asymmetric supply response in the U.S. livestock industry," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252779, Southern Agricultural Economics Association.
    2. Howard, Joshua C. & Cakan, Esin & Upadhyaya, Kamal P., 2016. "Climate Change And Its Impact On Wheat Production In Kansas," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-10, April.
    3. Jeder, Houcine & Naimi, Abdelmonem & Oueslati, Adnen, . "Transmission Between Retail And Producer Prices For Main Vegetable Crops In Tunisia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(01).
    4. Abu, O. & Okpe, A.E. & Abah, D.A., . "Effects of Climate and Other Selected Variables on Rice Output Response in Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 8(01).

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