ECONOMIC ANALYSIS OF SUPPLY RESPONSE OF SPRING SEASON POTATO GROP IN IRAQ USING ERROR CORRECTION MODEL AND COINTEGRATION DURING THE PERIOD 2008_1980.
Mesopotamia Journal of Agriculture,
2012, Volume 40, Issue 0, Pages 46-53
Potato is considered one of the most important strategic crops. From nutritional value aspect, it is considered the first alternative for cereal crops in solving the food shortage. In Iraq, potato represents one of the main vegetable crops which is grown in two seasons: spring and autumn.This study aimed to estimate supply response function of potato crops and to determine the main factors that affect the supply. The descriptional and econometrics analyses were used where models of distributed lagged models (ARDL) were used to measure the degree of supply response to the change of current and past price change. Finally, Pesaran model was used for estimation of the main factors affecting the supply of potato in Iraq during the period 1980-2008. Distributed lagged model was found to be the most convenient model. The price supply elasticities were 0.15 and 0.37 in short and long term repectively.
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