Fertilizer Consumption in Bangladesh: Tobit Analysis of Farm Level Data

Ashok Parikh

Indian Economic Review, 1990, vol. 25, issue 1, 1-15

Abstract: The objectives of this paper are to test four hypotheses in the context of Bangladesh fertilizer demand using tobit estimation on farm survey data of 457 farms. The hypotheses tested are: (a) Are fertilizers and labour complements or substitutes in Bangladesh? (b) Does the size of holding have any significant impact on consumption per acre? (c) Are fertilizers and manures substitutes or complements? and (d) Do prices play a dominant role? The study concludes that fertilizers and family labour are complements with non-price definition while fertilizers and hired labour are substitutes with price definition. The price elasticity of fertilizer demand ranges from -0.66 to -0.97 using various models.

Date: 1990
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