The Farm Price and The Cultivation Area of Wheat in Egypt: Effectiveness and Supply Response Measurements

Document Type : Original Articles

Abstract

This study empirically analyzes the supply response of
farm prices on wheat areas cultivated in Egypt during (1990-
2022), using the Nerlove model. The result is clear that the
wheat area in Egypt rise from 1.9 million feddan in 1990 to
3.4 million feddan in 2022, representing an increase in area
of about 80%. After estimating the model and chick for the
diagnostic problems, the results show that the speed of
adjustment is 0.335, meaning that every year only one-third
of the gap between the actual and desired area cultivated in
wheat. The short-run elasticity shows that with a 10% change
in wheat farm price on average, the wheat area changes by
1.54% in the same direction. The long-run elasticity shows
that with a 10% change in wheat farm price on average, the
area cultivated changes by 4.59% in the same direction. So,
the results of this study adapt economic relations, which can
enhance the recent studies on wheat growing in Egypt. Also,
policymakers and decision-makers can determine the plan
for wheat production.

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