Agricultural supply response in Fiji

Type Report
Title Agricultural supply response in Fiji
Publication (Day/Month/Year) 2008
The agricultural sector is a central part of the Fiji Islands economy. Policies to alleviate poverty andstimulate economic growth need to be based on a sound understanding of the local agriculturalsystems involved. This understanding needs to extend to the responsiveness of production to pricechanges. To date there have been no published quantitative estimates of the responsiveness ofagricultural supply in Fiji to output price changes. In this paper we present a set of highlydisaggregated supply elasticities covering many of the major food crops produced and consumed inFiji. These results have been derived from a stated intention survey of rural households. The resultsappear consistent with the dual nature of Fiji's agricultural sector and show that agricultural supplyresponse in Fiji is own-price elastic for the ten commodities analysed.

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