The Influence of Price and Non-Price Factors on Acreage Response of Maize in Eswatini

D. V. Dlamini*, S. G. Dlamini, D. Akelrele and Q. Jele
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D. V. Dlamini*: Department of Agricultural Economics and Management, Faculty of Agriculture, University of Eswatini, Luyengo, Eswatini
S. G. Dlamini: Department of Agricultural Economics and Management, Faculty of Agriculture, University of Eswatini, Luyengo, Eswatini
D. Akelrele: Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta, Nigeria
Q. Jele: Department of Agricultural Economics and Management, Faculty of Agriculture, University of Eswatini, Luyengo, Eswatini

Journal of Agriculture and Crops, 2019, vol. 5, issue 3, 38-42

Abstract: The study analyzes the acreage response of maize with respect to price and non-price factors in Swaziland during the period 1968-2017. Rainfall and agricultural policy are the non-price factors considered in this study. The Cointergration and Vector Error Correction Modeling approaches were used to estimate the short run and long run elasticities of price and non-price factors acreage response of maize in Eswatini. The results confirm that non-price factors seem to have more effect on acreage response in the long run. The introduction of the Maputo declaration policy in 2003 had not yeld the positive impact on maize annual acreage changes. The study also shows that climatological factors such as rainfall has a positive influence on maize production and resource allocation both in short and long run. Development of climate change mitigation and adaptation strategies would assist the maize production sector in the country. The strategies cannot affect natural conditions like rainfall, but it can compensate for the negative impact of climate change by increasing investment in irrigation, promoting efficient use of water and encouraging adoption of drought resistant varieties of seeds.

Keywords: Maize acreage response; Price factors; Non-Price factors; Vector error correction model. (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:arp:jacarp:2019:p:38-42

DOI: 10.32861/jac.53.38.42

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