Supply response for wheat in Turkey: a vector error correction approach
New Medit, vol 10, n.3, (September 2011), pp. 34-38
Jel classification: C51, Q11
The supply response of overall wheat production was analysed using a cointegration approach for the period 1960 and 2009. The amount of wheat produced was analysed with respect to the production amount of the previous period, to the land devoted to wheat production and the producer price. The dynamics of the long-run equilibrium led to the incorporation of a cointegration modelling. The findings indicated that farmers are not responsive to the price changes and the wheat supply is shaped according to structural characteristics of wheat production. The short-run equilibrium is offset by more than 90% in the current period, which was shaped by the past decisions on price, production amount and production lands. This means that the long-run equilibrium is reached by more than 90% in the period concerned.
wheat, price analysis, cointegration, Turkey