Economic Analysis of Supply Response of Broad Beans Crop in Egypt

Abstract

The Broad beans crop in Egypt is considered a major source of food for a great number of the population, in recent years its prices have witnessed a significant increase , despite it being considered an alternative to animal protein, whose prices have also witnessed a huge increase. This research aims to study the supply response of Broad beans crop in Egypt, through studying the production and economic indicators, also identifying the most important variables impact on response of the cultivated area, and estimating the degree of response for most important variables which impact on the response of cultivated area of Broad beans crop in Egypt, besides estimate the annual amount of response to reach the period necessary to achieve a full response. The results showed that the cultivated area with Broad bean has taken a general and statistically significant decreasing trend, reached 11.14 thousand acres, with an annual decrease rate 7.57% of the cultivated area average. The results of the supply response function also indicated that there is a logical inverse relationship between each of Broad beans cultivated area (as a dependent variable) and the farm price of lentil, Clover, Chickpeas, Flax and Onion with Egyptian pounds in the previous year (as explanatory variables).

Keywords

• supply response
• nerlove model
• broad beans