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An Analysis of Rubber Supply in Sri Lanka
Author(s) -
Hartley Michael J.,
Nerlove Marc,
Peters R. Kyle
Publication year - 1987
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242185
Subject(s) - sri lanka , natural rubber , business , natural resource economics , economics , environmental science , environmental planning , chemistry , organic chemistry , tanzania
An analysis of the supply response for perennial crops is undertaken for rubber in Sri Lanka, focusing on the uprooting‐replanting decision and disaggregating the typical “reduced‐form” supply response equation into several structural relationships. This approach is compared and contrasted with Dowling's analysis of supply response for rubber in Thailand, which is based upon a sophisticated reduced‐form supply function developed by Wickens and Greenfield for Brazilian coffee. Because the uprooting‐replanting decision is central to understanding rubber supply response in Sri Lanka and for other perennial crops where replanting activities dominate new planting, the standard approaches do not adequately capture supply response.