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A Multilevel Economic Analysis of the Wheat Market in Pakistan

Author

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  • Ashfaq, Muhammad
  • Parton, Kevin A.
  • Griffith, Garry R.
  • Piggott, Roley R.

Abstract

Government price policy in Pakistan affects both the supply and demand of wheat. The wheat market has been established in a particular idiosyncratic manner in Pakistan, and a thorough appraisal of policy needs to take this into account. Hence, to analyse various policy interventions, this study develops a multi-level wheat market model. After considering the real world aspects of the wheat marketing chain, a conceptual framework is developed involving five market levels. This is then translated into a multi-equation econometric model. The model is based on secondary time series data from 1971 to 1996. It consists of equations representing supply, demand, stock holding, importing and price formation. The model is used to estimate changes in consumer surplus, producer surplus and government expenditures, resulting from proposed policy changes.

Suggested Citation

  • Ashfaq, Muhammad & Parton, Kevin A. & Griffith, Garry R. & Piggott, Roley R., 1999. "A Multilevel Economic Analysis of the Wheat Market in Pakistan," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123757, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare99:123757
    DOI: 10.22004/ag.econ.123757
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    References listed on IDEAS

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    2. Lal, Jagdish & Singh, Katar, 1981. "Determinants of Sugarcane Acreage Fluctuations in Uttar Pradesh," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 36(1), January.
    3. Bogahawatte, Cyril, 1990. "Welfare Effects Of Government Inter Vent10n In Rice Marketing: Case For Sri Lanka," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 13(1-2), pages 1-13, December.
    4. Riaz, Khalid, 1994. "Food consumption patterns in rural Pakistan," ISU General Staff Papers 1994010108000011501, Iowa State University, Department of Economics.
    5. Salassi, Michael E., 1995. "The Responsiveness of U.S. Rice Acreage to Price and Production Costs," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 386-399, December.
    6. Ejaz Ghani, 1998. "The Wheat Pricing Policies in Pakistan: Some Alternative Options," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(2), pages 149-166.
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    Keywords

    Crop Production/Industries; Marketing;

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