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Supply Response of Export Crops in Zambia: The Case of Coffee

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  • Mofya-Mukuka, Rhoda
  • Abdulai, Awudu

Abstract

1) Export diversification has long been at the centre of Zambia’s economic diversification policies. This article focuses on the coffee sector as a potentially important source of export diversification and examines its supply response to changes in various incentives. 2) Zambian coffee exhibits asymmetric short-run supply adjustments to long-run equilibrium such that production rises significantly after prices rise while changing little after prices fall. 3) The fact that coffee in Zambia is mainly grown for export, the changes in real exchange have the most significant effect on supply in that a depreciation in the Zambian Kwacha leads to an increase in coffee supply.

Suggested Citation

  • Mofya-Mukuka, Rhoda & Abdulai, Awudu, 2012. "Supply Response of Export Crops in Zambia: The Case of Coffee," Food Security Collaborative Policy Briefs 123556, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  • Handle: RePEc:ags:midcpb:123556
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    File URL: http://purl.umn.edu/123556
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    References listed on IDEAS

    as
    1. Rao, J. Mohan, 1989. "Agricultural supply response: A survey," Agricultural Economics, Blackwell, vol. 3(1), pages 1-22, March.
    2. Abdulai, Awudu & Rieder, Peter, 1995. "The Impacts of Agricultural Price Policy on Cocoa Supply in Ghana: An Error Correction Estimation," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 4(3), pages 315-335, December.
    3. Andrew McKay & Oliver Morrissey & Charlotte Vaillant, 1999. "Aggregate supply response in Tanzanian agriculture," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(1), pages 107-123.
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    Keywords

    Zambia; coffee; export; Agricultural and Food Policy; Food Security and Poverty;

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