IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v40y2009i5p519-533.html
   My bibliography  Save this article

Estimating the supply response of cotton and cereal crops in smallholder production systems: recent evidence from Mali

Author

Listed:
  • Jeffrey D. Vitale
  • Hamady Djourra
  • Aminata Sidibé

Abstract

Cotton is one of the most important crops in West Africa and is a major catalyst of economic development in rural areas, but the sector has suffered from a decline in the world cotton price after 1999. This article exploits an unusual data set following 82 farmers over 14 years, from 1994 through 2007, to estimate a Nerlovian supply response model for cotton, maize, sorghum, and millet in long‐term rotation. The resulting system of equations is estimated with two‐stage least squares (2SLS), showing that this sample of Malian cotton producers have responded to prices in a relatively inelastic manner, with supply elasticities only about one‐half of those estimated for producers in developed countries. Policy reforms could help producers respond more easily to prices changes, as well as to raise average productivity levels.

Suggested Citation

  • Jeffrey D. Vitale & Hamady Djourra & Aminata Sidibé, 2009. "Estimating the supply response of cotton and cereal crops in smallholder production systems: recent evidence from Mali," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 519-533, September.
    • Handle: RePEc:bla:agecon:v:40:y:2009:i:5:p:519-533
    DOI: 10.1111/j.1574-0862.2009.00395.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1574-0862.2009.00395.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1574-0862.2009.00395.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Merrill J. Bateman, 1965. "Aggregate and Regional Supply Functions for Ghanaian Cocoa, 1946–1962," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(2), pages 384-401.
    2. Brent Hansen & Karim Nashashibi, 1975. "Appendixes to "Foreign Trade Regimes and Economic Development: Egypt"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Egypt, pages 317-350, National Bureau of Economic Research, Inc.
    3. Marc Nerlove, 1956. "Estimates of the Elasticities of Supply of Selected Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 496-509.
    4. Ian Coxhead & Bayou Demeke, 2004. "Panel Data Evidence on Upland Agricultural Land Use in the Philippines: Can Economic Policy Reforms Reduce Environmental Damages?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1354-1360.
    5. Mcmillan, Della E. & Sanders, John H. & Koenig, Dolores & Akwabi-Ameyaw, Kofi & Painter, Thomas M., 1998. "New Land is not enough: Agricultural performance of New Lands settlement in West Africa," World Development, Elsevier, vol. 26(2), pages 187-211, February.
    6. Brent Hansen & Karim Nashashibi, 1975. "Foreign Trade Regimes and Economic Development: Egypt," NBER Books, National Bureau of Economic Research, Inc, number hans75-1.
    7. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    8. J. Mohan Rao, 1989. "Agricultural Supply Response: A Survey," Agricultural Economics, International Association of Agricultural Economists, vol. 3(1), pages 1-22, March.
    9. Jeffrey Vitale & David A. Bessler, 2006. "On the discovery of millet prices in Mali," Papers in Regional Science, Wiley Blackwell, vol. 85(1), pages 139-162, March.
    10. Animesh Ghoshal, 1975. "The Price Responsiveness of Primary Producers: A Relative Supply Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(1), pages 116-118.
    11. Adam Ozanne, 1999. "Perverse supply response in peasant agriculture: A review," Oxford Development Studies, Taylor & Francis Journals, vol. 27(2), pages 251-270.
    12. Mushtaq, Khalid & Dawson, P. J., 2002. "Acreage response in Pakistan: a co-integration approach," Agricultural Economics, Blackwell, vol. 27(2), pages 111-121, August.
    13. Shumway, C. Richard & Jegasothy, Kandiah & Alexander, William P., 1988. "Production Interrelationships In Sri Lankan Peasant Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(1), pages 1-13, April.
    14. repec:phd:pjdevt:jpd_1992_vol__xix_no__2-d is not listed on IDEAS
    15. Brent Hansen & Karim Nashashibi, 1975. "Introduction to "Foreign Trade Regimes and Economic Development: Egypt"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Egypt, pages -5--1, National Bureau of Economic Research, Inc.
    16. Mohamadou Fadiga & Samarendu Mohanty & Mark Welch & Suwen Pan, 2008. "Doha development agenda: implications for the US and world cotton markets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(1), pages 135-153.
    17. Peter F. Orazem & John A. Miranowski, 1994. "A Dynamic Model of Acreage Allocation with General and Crop-Specific Soil Capital," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 385-395.
    18. Rao, J. Mohan, 1989. "Agricultural supply response: A survey," Agricultural Economics, Blackwell, vol. 3(1), pages 1-22, March.
    19. Edwin R. Dean, 1965. "Economic Analysis and African Responses to Price," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(2), pages 402-409.
    20. Anya M. McGuirk & Yair Mundlak, 1992. "The Transition of Punjab Agriculture: A Choice of Technique Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 132-143.
    21. Coyle, Barry T., 1993. "On Modeling Systems Of Crop Acreage Demands," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-13, July.
    22. Miranowski, John & Orazem, Peter, 1994. "A Dynamic Model of Acreage Allocation with General and Crop-Specific Capital," Staff General Research Papers Archive 10695, Iowa State University, Department of Economics.
    23. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    24. Gillson, I & Poulton, Colin & Balcombe, Kelvin & Page, S, 2004. "Understanding the impact of Cotton Subsidies on developing countries," MPRA Paper 15373, University Library of Munich, Germany.
    25. Scott M. Eddie, 1971. "Farmers' Response to Price in Large-Estate Agriculture: Hungary, 1870–1913," Economic History Review, Economic History Society, vol. 24(4), pages 571-588, November.
    26. Shepherd, Ben & Delpeuch, Claire, 2007. "Subsidies and regulatory reform in West African cotton: What are the development stakes?," MPRA Paper 2289, University Library of Munich, Germany.
    27. Marc Nerlove & Kenneth L. Bachman, 1960. "The Analysis of Changes in Agricultural Supply: Problems and Approaches," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 42(3), pages 531-554.
    28. Eckstein, Zvi, 1984. "A Rational Expectations Model of Agricultural Supply," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 1-19, February.
    29. Askari, Hossein & Cummings, John Thomas, 1977. "Estimating Agricultural Supply Response with the Nerlove Model: A Survey," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 257-292, June.
    30. Doraiswamy, P.C. & McCarty, G.W. & Hunt, E.R. Jr. & Yost, R.S. & Doumbia, M. & Franzluebbers, A.J., 2007. "Modeling soil carbon sequestration in agricultural lands of Mali," Agricultural Systems, Elsevier, vol. 94(1), pages 63-74, April.
    31. Narayana, N S S & Shah, M M, 1984. "Farm Supply Response in Kenya: Acreage Allocation Model," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 11(1), pages 85-105.
    32. Chavas, Jean-Paul & Pope, Rulon D. & Kao, Robert S., 1983. "An Analysis Of The Role Of Futures Prices, Cash Prices And Government Programs In Acreage Response," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(1), pages 1-7, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kergna, Alpha & Smale, Melinda & Assima, Amidou & Weltzien, Eva & Rattunde, Fred, 2016. "The potential economic impact of guinea-race sorghum hybrids in Mali: Comparing research paradigms," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246964, African Association of Agricultural Economists (AAAE).
    2. repec:ajn:agdeve:2017:p:16-36 is not listed on IDEAS
    3. Didier Yélognissè Alia & Anne Floquet & Epiphane Adjovi, 2017. "Heterogeneous Welfare Effect of Cotton Pricing on Households in Benin," African Development Review, African Development Bank, vol. 29(2), pages 107-121, June.
    4. Magrini, Emiliano & Morales-Opazo, Cristian & Balie, Jean, 2014. "Supply response along the value chain in selected SSA countries: the case of grains," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197193, International Agricultural Trade Research Consortium.
    5. Jeffrey Vitale & Marc Ouattarra & Gaspard Vognan, 2011. "Enhancing Sustainability of Cotton Production Systems in West Africa: A Summary of Empirical Evidence from Burkina Faso," Sustainability, MDPI, vol. 3(8), pages 1-34, July.
    6. Mekbib G. Haile & Tesfamicheal Wossen & Kindie Tesfaye & Joachim von Braun, 2017. "Impact of Climate Change, Weather Extremes, and Price Risk on Global Food Supply," Economics of Disasters and Climate Change, Springer, vol. 1(1), pages 55-75, June.
    7. Donato, Romano & Carraro, Alessandro, 2015. "Modelling Acreage, Production and Yield Supply Response to Domestic Price Volatility," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207278, Italian Association of Agricultural and Applied Economics (AIEAA).
    8. Jiarong Qian & Shoichi Ito & Zhijun Zhao, 2020. "The effect of price support policies on food security and farmers’ income in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1328-1349, October.
    9. Ollenburger, Mary H. & Descheemaeker, Katrien & Crane, Todd A. & Sanogo, Ousmane M. & Giller, Ken E., 2016. "Waking the Sleeping Giant: Agricultural intensification, extensification or stagnation in Mali's Guinea Savannah," Agricultural Systems, Elsevier, vol. 148(C), pages 58-70.
    10. Emmanuel Tumusiime & B. Wade Brorsen & Jeffrey D. Vitale, 2014. "Vertical integration in West Africa's cotton industry: are parastatals a second best solution?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 129-143, November.
    11. Traoré, Fousseini, 2013. "Estimating the supply elasticity of cotton in Mali with the Nerlove Model: A bayesian method of moments approach," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 94(3).
    12. Femenia, F. & Carpentier, A. & Gohin, A. & Sodjadhin, R., 2018. "Using farm accountancy data to estimate crop rotation effects," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277161, International Association of Agricultural Economists.
    13. Kergna, Alpha & Smale, Melinda & Assima, Amidou & Diallo, Abdoulaye & Weltzien, Eva & Rattunde, Fred, 2017. "The potential economic impact of Guinea-race sorghum hybrids in Mali: A comparison of research and development paradigms," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 12(1), March.
    14. Amouzou, Kokou Adambounou & Naab, Jesse B. & Lamers, John P.A. & Borgemeister, Christian & Becker, Mathias & Vlek, Paul L.G., 2018. "CROPGRO-Cotton model for determining climate change impacts on yield, water- and N- use efficiencies of cotton in the Dry Savanna of West Africa," Agricultural Systems, Elsevier, vol. 165(C), pages 85-96.
    15. Yu, Bingxin & Liu, Fengwei & You, Liangzhi, 2010. "Dynamic agricultural supply response under economic transformation," IFPRI discussion papers 987, International Food Policy Research Institute (IFPRI).
    16. Sukcharoen, Kunlapath & Golden, Bill & Vestal, Mallory & Guerrero, Bridget, 2020. "Do crop price expectations matter? An analysis of groundwater pumping decisions in Western Kansas," Agricultural Water Management, Elsevier, vol. 231(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Magrini, Emiliano & Morales-Opazo, Cristian & Balie, Jean, 2014. "Supply response along the value chain in selected SSA countries: the case of grains," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197193, International Agricultural Trade Research Consortium.
    2. Md Zabid Iqbal & Bruce A. Babcock, 2018. "Global growing‐area elasticities of key agricultural crops estimated using dynamic heterogeneous panel methods," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 681-690, November.
    3. Magrini, Emiliano & Balié, Jean & Morales Opazo, Cristian, 2016. "Price signals and supply responses for staple food crops in SSA countries," DARE Discussion Papers 1601, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    4. Donato, Romano & Carraro, Alessandro, 2015. "Modelling Acreage, Production and Yield Supply Response to Domestic Price Volatility," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207278, Italian Association of Agricultural and Applied Economics (AIEAA).
    5. Umanath Malaiarasan & R. Paramasivam & K. Thomas Felix & S. J. Balaji, 2020. "Simultaneous equation model for Indian sugar sector," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 113-141, June.
    6. Eric B. Schneider, 2014. "Prices and production: agricultural supply response in fourteenth-century England," Economic History Review, Economic History Society, vol. 67(1), pages 66-91, February.
    7. Gouel, Christophe & Laborde, David, 2021. "The crucial role of domestic and international market-mediated adaptation to climate change," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    8. Skold, Karl Durwood, 1989. "The integration of alternative information systems: an application to the Hogs and Pigs report," ISU General Staff Papers 1989010108000010239, Iowa State University, Department of Economics.
    9. Boussios, David & Barkley, Andrew P., 2012. "Kansas Grain Supply Response to Economic and Biophysical Factors, 1977-2007," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124385, Agricultural and Applied Economics Association.
    10. Jonathon Siegle & Gregory Astill & Zoë Plakias & Daniel Tregeagle, 2024. "Estimating perennial crop supply response: A methodology literature review," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 159-180, March.
    11. Burton, Diana M. & Love, H. Alan, 1996. "A Review of Alternative Expectations Regimes in Commodity Markets: Specification, Estimation, and Hypothesis Testing Using Structural Models," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(2), pages 213-231, October.
    12. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(1), March.
    13. Hyunseok Kim & GianCarlo Moschini, 2018. "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era," Land Economics, University of Wisconsin Press, vol. 94(4), pages 593-613.
    14. Baker, Mindy L. & Hayes, Dermot J. & Babcock, Bruce A., 2008. "Crop-Based Biofuel Production under Acreage Constraints and Uncertainty," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6352, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Mindy L. Mallory & Dermot J. Hayes & Bruce A. Babcock, 2011. "Crop-Based Biofuel Production with Acreage Competition and Uncertainty," Land Economics, University of Wisconsin Press, vol. 87(4), pages 610-627.
    16. Ulaş Karakoç, 2018. "Industrial growth in interwar Egypt: first estimates, new insights," European Review of Economic History, European Historical Economics Society, vol. 22(1), pages 53-72.
    17. Mekbib G. Haile & Matthias Kalkuhl & Joachim Braun, 2014. "Inter- and intra-seasonal crop acreage response to international food prices and implications of volatility," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 693-710, November.
    18. Femenia, F. & Carpentier, A. & Gohin, A. & Sodjadhin, R., 2018. "Using farm accountancy data to estimate crop rotation effects," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277161, International Association of Agricultural Economists.
    19. Sylvia, Lane & Benito, Carlos & Berninsone, Rosa Maria, 1981. "Food Consumption in Rural Egypt Bibliography," Working Papers 232848, University of California, Davis, Agricultural Development Systems: Egypt Project.
    20. Md Shafiul Azam & Katsushi Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation: the Case of Cambodia," Economics Discussion Paper Series 1208, Economics, The University of Manchester.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:40:y:2009:i:5:p:519-533. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.