5
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.
Share with your friends: 
