Seventh Issue

THE EFFECT OF PRICE POLICY FOR THE SUPPLY RESPONSE OF POTATO CROP IN REPUBLIC OF YEMEN

Ali Abdul-mageed Al-sururi
Summary

This study aimed at estimating the trend equations for area, yield, production, price of potatoes, production cost per hectare, price of tomatoes, price of potatoes’ seeds and price of nitrogen. The analysis, using the linear, quadratic and semi-log equations, reveals that there were statistical significance in increasing area, yield, production and all variables. The study aimed also to measure the response the of area and productivity of potatoes to price change in production.. The results of the study reveal that potatoes area is responsive to the variables in year (t-1). The estimated short-run elasticity is almost ( 0.4924) for the potatoes price , ( - 0.5 ) for the production cost and (- 0.131) for tomatoes price. Estimated Long-run elasticity is almost (0.768) for potatoes price, (- 0.78) for the production cost and (0.204) for tomatoes price. The results also reveal that productivity of potatoes in responsive to the price-change price changes in year (t-1). The estimated short-run elasticity is almost ( 0.365) for the potatoes price , (- 0.35) for the price of potatoes seed and (- 0.17) for nitrogen price. The long-run elasticity is almost (1.023) for potatoes price, (- 0.98) for the price of potatoes seed and (- 0.475) for nitrogen price.

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