4.5 Conclusion
The supply function for tobacco in Zimbabwe was estimated and empirical findings have been presented and interpreted. The short-run and long-run price elasticities of tobacco output in Zimbabwe were estimated and found that supply of tobacco is inelastic to changes in tobacco prices. Supply of tobacco was found to be significantly influenced by lagged tobacco output, population of active tobacco growers, expectations in tobacco and maize prices. Short-run technological changes and sales quotas were found to be statistically insignificant. Based on these findings, the following chapter provides the summary, conclusion and policy recommendations.
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