Acreage response in Pakistan: a co-integration approach

This paper seeks to quantify the acreage responses of wheat, cotton, sugarcane and rice in Pakistan using co-integration techniques and impulse response analysis. Results indicate that acreages of wheat and basmati rice do not respond significantly to shocks in own-price while cotton, sugarcane and high yielding variety (HYV) rice do, and that long-run equilibrium is re-established after about 4 years. Inigated area is an important determinant of acreage. © 2002 Elsevier Science B.V. All rights reserved