EconPapers    
Economics at your fingertips  
 

Estimation of the aggregate agricultural supply response in Zimbabwe: The ARDL approach to cointegration

Edwin Muchapondwa ()

No 90, Working Papers from Economic Research Southern Africa

Abstract: This paper uses relatively recent time series techniques on data spanning over different pricing regimes to estimate the aggregate agricultural supply response to price and non-price factors in Zimbabwe. The ARDL approach to cointegration employed here gives consistent estimates of supply response in the presence of regressor endogeneity and also permits the estimation of distinct estimates of both long-run and short-run elasticities when variables are not integrated of the same order. The results confirm that agricultural prices in Zimbabwe are endogenous and the variables are not integrated of the same order hence use of the ARDL was worthwhile. The paper finds a long-run price elasticity of 0.18 confirming findings in the literature that aggregate agricultural supply response to price is inelastic. This result means that the agricultural price policy is rather a blunt instrument for effecting growth in aggregate agricultural supply. The provision of non-price incentives must play a key role in reviving the agricultural sector in Zimbabwe.

Keywords: Aggregate agricultural supply response; ARDL approach to cointegration (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.econrsa.org/node/114 (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:rza:wpaper:90

Access Statistics for this paper

More papers in Working Papers from Economic Research Southern Africa Contact information at EDIRC.
Bibliographic data for series maintained by Dane Rossenrode ().

 
Page updated 2020-12-03
Handle: RePEc:rza:wpaper:90