Aggregate supply response in Tanzanian agriculture

Andy McKay, Oliver Morrissey and Charlotte Vaillant

The Journal of International Trade & Economic Development, 1999, vol. 8, issue 1, 107-123

Abstract: Tanzania is among the many African countries that have engaged in agricultural liberalization since the mid-1980s. in the hope that reforms that introduce price incentives and efficient marketing will encourage producers to respond. This paper assesses that claim by examining the supply response of agricultural output in Tanzania. Our estimates suggest that aggregate agricultural supply response is quite high so that the potential for agricultural sector response to liberalization of agricultural prices and marketing may be quite significant. The long-run elasticity of aggregate food crop output to relative prices was almost unity. Short-run supply responses were estimated at about 0.35 for aggregate food crops and for all (food and export) crops. Liberalization of agricultural markets, where it increases the effective prices paid to farmers, can be effective in promoting production, although complementary interventions, to improve infrastructure, marketing, access to inputs and credit, improved production technology etc, are probably necessary.

Keywords: Agricultural supply response; Tanzania (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (10)

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DOI: 10.1080/09638199900000008

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