Abstract: This research examines how the Zimbabwean Macadamia nuts farmer responds to changes in prices and non-price factors. The research utilized the Nerlovian Model (1958), a dynamic model that expresses current production output as a function of lagged variables of production output and other exogenous variables, which is an Autoregressive Distributed Lag (ARDL) Model. The natural logarithm (ln) of Yield per hectare depended on the ln of Yield lagged once, price, rainfall, fertilizer, chemical, fuel and labour, all lagged once. Time series monthly data (2009-2016) from Makandi Estates was analyzed. Results revealed an inelastic supply response both in short and long run. Such a weak supply response indicated that non-price factors were hindering the crop to swiftly respond to price changes.
Keywords: Macadamia Nuts Supply Response, Nerlovian Partial Adjustment Model, Autoregressive Distributed Lag Model (ARDL), Price Factor, Non-Price Factors.
Title: Estimating The Supply Response to Price and Non-Pricing factors of Macadamia Nuts Farmers in Zimbabwe: The Case of Chipinge’s Makandi Estates
Author: Mazuruse Peter, Mhuru Davidson, Muvingi Jacob, Gwarimbo Willard, Chiusunga David
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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