 A Panel Co-integration Analysis and Dynamic Causality Test of Agricultural Supply Response to Prices: The Case of Rice in West AfricaJournal of African Development, 2015, vol. 17, issue 1, 75-94 Abstract: The paper provides a regional estimate of rice yield and acreage supply response to prices in West Africa. Using balanced panel data of seven countries covering 1991-2006, the study employs panel cointegration estimators, namely FMOLS and DOLS to estimate the long-run rice yield supply function and using one-step Blundell-Bond system GMM to estimate the short-run acreage supply function in the region. While the empirical findings from both estimators provide similar results, the estimates show that price of maize is a key determinant of rice yield and acreage and there is rice-maize substitutability in both the long-run and short-run in the study. The short-run Granger causality runs only from maize price to rice acreage, while long run causality of joint effect of the prices on the acreage supply is also evident in the study. Our results also show that the rice yield and acreage supply functions are unresponsive to own price in the short -run and long -run, respectively. Keywords: Rice; Price; Supply elasticity; West Africa (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:afe:journl:v:17:y:2015:i:1:p:75-94 Access Statistics for this article More articles in Journal of African Development from African Finance and Economic Association (AFEA) Contact information at EDIRC. |
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