Price incentives, non-price factors, and agricultural production in Sub-Saharan Africa: a cointegration analysis
نویسنده
چکیده
This paper deals with the question of how responsive farmers in SubSaharan Africa (SSA) are to changes in incentives. Employing Johansen's multivariate cointegration approach, it investigates for ten selected SSA countries the long-run effect of pricing policies, macroeconomic distortions, and certain non-price factors on agricultural production. It turns out that – in those cases where cointegration relationships are found –estimated supply elasticities tend to lie between 0.20 and 0.50. Among the non-price factors, drought episodes have significantly impaired agricultural growth in six out of ten sample countries.
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