Supply Response Analysis of Pakistani Wheat Growers

Supply Response Analysis of Pakistani Wheat Growers

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.