The Effect of Price and Non-price Factors on Agricultural Production in Nepal: A Cointegration Analysis

Type Journal Article - 農業経済研究. 別冊, 日本農業経済学会論文集
Title The Effect of Price and Non-price Factors on Agricultural Production in Nepal: A Cointegration Analysis
Author(s)
Volume 2009
Publication (Day/Month/Year) 2009
Page numbers 575-582
Abstract
The issue of agricultural supply response to price and non-price factors has been widely
studied in the literature. However, there are lots of contradictions in the results. Past findings
showed that aggregate agriculture production is not responsive to price factor in the long run
[15] [17]. This is strongly pronounced in the studies considering the case of South Asian
countries [5] [7] [10] [18] [22]. Contrary to South Asian cases, the study conducted on aggregate
supply elasticity for Sub-Saharan Africa found that estimated supply elasticity to price factors
is positive and appears to have a substantial welfare cost due to discrimination against
agriculture [23]. Micro-level studies taking the case of a single crop have shown high
responsiveness to price as well as non-price factors like technology and infrastructure [1] [2] [3]
[4] [6] [8] [19] [21]. So it is obvious that supply response behavior depends on country-specific
characteristics.

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