AN ECONOMIC ANALYSIS AND POLICY IMPLICATION

The purpose of this study was to identify the factors that determine beef cattle inventory and beef cattle slaughter behavioral relationships in Botswana, and to derive the impact of changes in these factors on the cattle industry. A dynamic production model consisting of two structural equations, cattle inventory and cattle slaughter, and an identity equation of total meat production was formulated, based on the theory of the firm. The independent variables included deflated cattle prices, rainfall index, road development and trend. The model was estimated using a nonlinear least squares algorithm. Cattle inventory was found to be significantly influenced by cattle prices. Cattle slaughter was found to be significantly affected by both price and rainfall index. Road development and trend showed no explanatory power in the model. Interpretation of the results is offered in the body. STATEMENT OF PERMISSION TO COPY In presenting this thesis in partial fulfillment of the require ments for an advanced degree at Montana State University, I agree that the Library shall make it freely available for inspection. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by my major professor, or, in his absence, by the Director of Libraries. It is understood that any copying or publication of this thesis for financial gain shall not be allowed without my written permission