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Estimating demand and supply of edible oil in Pakistan


  • Haq, Rashida


This paper examines the demand for edible oil in Pakistan and a dynamic supply response model to show price responsiveness by sunflower oilseed farmers. The demand for edible oil is estimated by using Ordinary Least Square (OLS) technique. It has been found that an increase in the consumption of edible oil is highly affected by urbanization, increase in per capita income, relative high price of its substitutes and the rapid growth of the population. In order to estimate supply response model of oilseed (sunflower), Nerlovian partial adjustment model has been used. The dynamic supply response showed a positive price responsiveness by sunflower oilseed farmers, which is consistent with a priori expectation.

Suggested Citation

  • Haq, Rashida, 1991. "Estimating demand and supply of edible oil in Pakistan," MPRA Paper 38948, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:38948

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    More about this item


    Estimation of Demand and Supply of Edible Oil; Pakistan; Ordinary Least Square Technique; Model;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • A1 - General Economics and Teaching - - General Economics
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General


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