Faculty of social studies department of economics supply response of tobacco output to price changes in
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| 1.4 Research Objectives The broad objective of this study is to identify factors influencing tobacco supply in Zimbabwe whilst the specific objective is To estimate and quantify the responsiveness of tobacco output to price changes in Zimbabwe. 1.5 Research Hypothesis In order to answer the above research questions, the following hypothesis is formulated Tobacco output respond to changes in tobacco prices in Zimbabwe. 1.6 Significance of the Study According to Mamingi (1996), the knowledge of agricultural supply response is of great importance since it has an impact on economic growth and poverty. Therefore the understanding of tobacco output response to prices would aid policymakers in formulating policies that are imperative to economic growth. According to Mumbengegwi (1990), using agricultural policy instruments to affect agricultural activities without empirical knowledge of the structural parameters of agricultural supply may result in inappropriate use of policy instruments thereby producing unintended results. Therefore, it is necessary to know the exact response of agricultural supply if an effective agricultural policy is to be implemented, thus this study will assist policymakers in implementing agricultural policies by identifying the key variables responsible for agricultural supply response particularly tobacco output supply response. 1.7 Organisation of the Rest of the Study The rest of the study is organised as follows Chapter Two will review both theoretical and empirical studies relating to supply response of tobacco output to prices. Chapter Three provides an outline of the study methodology which covers data sources, time period and estimation techniques. Estimation, presentation and interpretation of results are done in Chapter Four. Lastly, Chapter Five gives the summary, conclusion and policy recommendations. 5 |