ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTAN
This study was conducted to analyze the acreage response of maize with respect to price and non-price factors in Khyber Pakhtunkhwa. The time-series data for the period of 35 years (1976-2010) pertaining to, maize area, maize price, rice price, maize yield, average rainfall were collected from va...
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| Format: | Article |
| Language: | English |
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International Journal of Food and Agricultural Economics
2014-07-01
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| Series: | International Journal of Food and Agricultural Economics |
| Subjects: | |
| Online Access: | http://www.foodandagriculturejournal.com/vol2.no3.pp33.pdf |
| _version_ | 1797917932340117504 |
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| author | Bakhtawar Riaz Shahid Ali Dawood Jan |
| author_facet | Bakhtawar Riaz Shahid Ali Dawood Jan |
| author_sort | Bakhtawar Riaz |
| collection | DOAJ |
| description | This study was conducted to analyze the acreage response of maize with respect to price
and non-price factors in Khyber Pakhtunkhwa. The time-series data for the period of 35
years (1976-2010) pertaining to, maize area, maize price, rice price, maize yield, average
rainfall were collected from various published sources. Nerlovian adjustment lag model and
Vector Auto Regression (VAR) technique of estimation was employed for analyzing acreage
response of maize. The model explained more than 90 percent of variation in the dependent
variable. The expected maize price was unlikely found to be negative and statistically
insignificant. The regression coefficients for lag rice price and lag maize yield also appeared
insignificant. Area under maize in lagged year was found to be an important variable
influencing farmer’s decision on acreage allocation. Among the short run and long run
elasticities with respect to lag area that is 0.7155 and 2.5149, long run elasticity was more,
signaling that acreage adjustment would normally take place in the long run. The coefficient
of lag rainfall was found to be negative and significant indicating a negative relation
between maize acreage and rainfall. The short run elasticity of maize area with respect to
lag rainfall during the study period has been calculated at -0.0894 while the long run
elasticity comes to be -0.3142, indicate its inelastic nature and little effect on the decision of
farmers regarding allocation of land to maize. Small area adjustment coefficient (0.2845)
revealed low rate of farmers’ area adjustment to desired level because of more institutional
and technological constraints. Based upon the findings of this study it can be concluded that
farmers allocate land to maize crop mainly basing on their previous allocation pattern
rather than relative crop prices. |
| first_indexed | 2024-04-10T13:21:26Z |
| format | Article |
| id | doaj.art-75a355c0f51048038684b37e7c3fc474 |
| institution | Directory Open Access Journal |
| issn | 2147-8988 |
| language | English |
| last_indexed | 2024-04-10T13:21:26Z |
| publishDate | 2014-07-01 |
| publisher | International Journal of Food and Agricultural Economics |
| record_format | Article |
| series | International Journal of Food and Agricultural Economics |
| spelling | doaj.art-75a355c0f51048038684b37e7c3fc4742023-02-15T16:12:01ZengInternational Journal of Food and Agricultural EconomicsInternational Journal of Food and Agricultural Economics2147-89882014-07-01233344ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTANBakhtawar Riaz0Shahid Ali1Dawood Jan2The University of Agriculture, PakistanThe University of Agriculture, PakistanThe University of Agriculture, PakistanThis study was conducted to analyze the acreage response of maize with respect to price and non-price factors in Khyber Pakhtunkhwa. The time-series data for the period of 35 years (1976-2010) pertaining to, maize area, maize price, rice price, maize yield, average rainfall were collected from various published sources. Nerlovian adjustment lag model and Vector Auto Regression (VAR) technique of estimation was employed for analyzing acreage response of maize. The model explained more than 90 percent of variation in the dependent variable. The expected maize price was unlikely found to be negative and statistically insignificant. The regression coefficients for lag rice price and lag maize yield also appeared insignificant. Area under maize in lagged year was found to be an important variable influencing farmer’s decision on acreage allocation. Among the short run and long run elasticities with respect to lag area that is 0.7155 and 2.5149, long run elasticity was more, signaling that acreage adjustment would normally take place in the long run. The coefficient of lag rainfall was found to be negative and significant indicating a negative relation between maize acreage and rainfall. The short run elasticity of maize area with respect to lag rainfall during the study period has been calculated at -0.0894 while the long run elasticity comes to be -0.3142, indicate its inelastic nature and little effect on the decision of farmers regarding allocation of land to maize. Small area adjustment coefficient (0.2845) revealed low rate of farmers’ area adjustment to desired level because of more institutional and technological constraints. Based upon the findings of this study it can be concluded that farmers allocate land to maize crop mainly basing on their previous allocation pattern rather than relative crop prices.http://www.foodandagriculturejournal.com/vol2.no3.pp33.pdfAcreage responseVector auto regressionShort and long run elasticitiesmaizePakistan |
| spellingShingle | Bakhtawar Riaz Shahid Ali Dawood Jan ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTAN International Journal of Food and Agricultural Economics Acreage response Vector auto regression Short and long run elasticities maize Pakistan |
| title | ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTAN |
| title_full | ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTAN |
| title_fullStr | ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTAN |
| title_full_unstemmed | ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTAN |
| title_short | ACREAGE RESPONSE ANALYSIS OF MAIZE GROWERS IN KHYBER PAKHTUNKHWA, PAKISTAN |
| title_sort | acreage response analysis of maize growers in khyber pakhtunkhwa pakistan |
| topic | Acreage response Vector auto regression Short and long run elasticities maize Pakistan |
| url | http://www.foodandagriculturejournal.com/vol2.no3.pp33.pdf |
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