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Have the Supply Responses Increased for the Major Crops in Bangladesh?

Shamsul Alam

 

Abstract

Supply response of the major crops have been estimated for the period 1971/72 to 1987/88 using the Nerlovian dynamic models through an Instrumental Variable Nonlinear Least Squares (IV-NLS)/Maximum Likelihood (IV-ML) method. The results are compared with the other studies and appeared the supply responses, particularly, for rice varieties and varietal types, and wheat have increased during the Bangladesh years. As the high yielding rice varieties appeared more responsive to real price changes, favourable price regimes, varietal improvement and also extended irrigation facilities would enhance more area substitution towards high yielding varieties.

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