Supply Response of Domestic Rice and Price Risk in Northern Ghana
Mohammed Tanko, Abdul Fatahi Alidu
The research aims at assessing the supply response of domestic rice and the price risk as well as the factors influencing the supply by estimating autoregressive distributed lag (ADL), error correction models and double logarithmic model of the linear zed Cobb Douglas model for major using a time series data that span about 45 years (19970 - 2015). The research obtains the short run and long run elasticity’s as well as the elasticity’s for the determining factor of domestic rice supply. The empirical result analysis suggests that producers are responsive not only to price but to price risk and exchange rate. It is observed that price risk need to be adequately reduced if meaningful improvement in rice production is expected from the price incentive.
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