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

  • Mofya-Mukuka, Rhoda
  • Abdulai, Awudu

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.

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File URL: http://purl.umn.edu/123556
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Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Food Security Collaborative Policy Briefs with number 123556.

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Date of creation: May 2012
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Handle: RePEc:ags:midcpb:123556
Contact details of provider: Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
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Web page: http://www.aec.msu.edu/agecon/
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  1. 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 315-35, December.
  2. 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.
  3. Rainer Thiele, 2000. "Estimating the Aggregate Agricultural Supply Response: A Survey of Techniques and Results for Developing Countries," Kiel Working Papers 1016, Kiel Institute for the World Economy.
  4. Rao, J. Mohan, 1989. "Agricultural supply response: A survey," Agricultural Economics, Blackwell, vol. 3(1), pages 1-22, March.
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