The Farm Price and The Cultivation Area of Wheat in Egypt: Effectiveness and Supply Response Measurements | ||||
| Minia Journal of Agricultural Research and Development | ||||
| Volume 44, Issue 1, March 2024, Page 1-14 PDF (558.33 K) | ||||
| Document Type: Original Articles | ||||
| DOI: 10.21608/mjard.2024.339595 | ||||
 View on SCiNiTO | ||||
| Abstract | ||||
| This study empirically analyzes the supply response of farm prices on wheat areas cultivated in Egypt during (1990- 2022), using the Nerlove model. The result is clear that the wheat area in Egypt rise from 1.9 million feddan in 1990 to 3.4 million feddan in 2022, representing an increase in area of about 80%. After estimating the model and chick for the diagnostic problems, the results show that the speed of adjustment is 0.335, meaning that every year only one-third of the gap between the actual and desired area cultivated in wheat. The short-run elasticity shows that with a 10% change in wheat farm price on average, the wheat area changes by 1.54% in the same direction. The long-run elasticity shows that with a 10% change in wheat farm price on average, the area cultivated changes by 4.59% in the same direction. So, the results of this study adapt economic relations, which can enhance the recent studies on wheat growing in Egypt. Also, policymakers and decision-makers can determine the plan for wheat production. | ||||
| Keywords | ||||
| Wheat; Supply response; Nerlove model; Partial adjustment model (PAM); elasticity | ||||
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