The Price Response of Major Crops in Pakistan: An Application of the Simultaneous Equation Model

Mubarik Ali
Additional contact information
Mubarik Ali: Chemonics International, Economic Analysis Network project, Islamabad.

The Pakistan Development Review, 1990, vol. 29, issue 3 and 4, 305-325

Abstract: This paper specifies a model to simultaneously estimate the price response, assuming an interdependence among crops. The model is applied to estimate own-and cross-price elasticities of five major crops in Pakistan, viz., wheat, cotton, rice, sugarcane, and maize based on the production and expected wholesale-price data for the period 1957-86. The study found little potential to enhance overall agricultural productivity by increasing the single crop price, since either the own-price elasticities were low or, otherwise, the nagative cross-price effects on the production of other crops were high. However, a 10-percent systematic improvement in terms of trade for agriculture will increase overall agricultural productivity by about 6 percent in the long run.

Date: 1990
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/1990/Volume3-4/305-325.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:29:y:1990:i:3-4:p:305-325

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().