Supply Response Analysis of Pakistani Wheat Growers

  •  Nadeem Bhatti    
  •  Anwar Ali Shah    
  •  Naimatullah Shah    
  •  Faiz. M. Shaikih    
  •  Kamran Shafiq    


Alternative specifications of model of supply response of Pakistani wheat growers and their economic
implications are considered in terms of the existences and nature of production lags, and the choice between
expected wheat and gross returns as the preferred explanatory of producer’s response to changing economic
condition. Data were collected from 1961-2008 by using time series analysis and data were analysis by using
SPSS-16.5 version. The analyses indicate that there are lags which are due primarily to the difficulties and cost
of rapid adjustment rather than to the time required to revise expectations. The statistical results were similar for
the alternative specification of gross margins and wheat as the economic decision available. However, the wheat
elasticities derived using the gross margins specification were about a third of those using the wheat
specification. The paper used data by using the time series analysis of Wheat response analysis. A longitudinal in
depth study is needed for the decision analysis. The gross margin specification yielded additional information in
the form of yield and input cost elasticities.The clarified concept of Wheat response analysis presented. Also, the
systematized the factors is introduced and tested empirically.

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