The Effect of Cultivated Area and the Prices of Buying the Rice on Its Production in AL- Qadisiyah Province-Iraq During (1990-2014) by Using VECM

  • Hayder Abbas Drebee College of Agriculture , University of Al-Qadisiyah

Abstract

The study aims to determine the effect of the cultivated area and the purchase price on the production of rice in the province of Al-Qadissiya - Iraq for the period (1990-2014). Johansen and Juseliusmethod is used to test the co-integration between the variables. Vector Error Correction Model (VECM) is employed to determine the direction of the causality between production and priceof rice, as well as between the production of rice and theĀ  area cultivated in the short and long run. The analysis of the results shows that there is a co-integration among the variables, and the direction of the relationship is a directional move from cultivated area to production of rice, and from price to production of rice in the short and long run. The study recommends to expand the cultivated area along with maintaining the farm and not to converted to other crops, in addition of determining the purchase price of the crop at the beginning of the agricultural season to ensure a good income for farmers in order to motivate them to increase production.

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Published
2017-06-21
How to Cite
ABBAS DREBEE, Hayder. The Effect of Cultivated Area and the Prices of Buying the Rice on Its Production in AL- Qadisiyah Province-Iraq During (1990-2014) by Using VECM. Al-Qadisiyah Journal For Agriculture Sciences, [S.l.], v. 7, n. 1, p. 102-113, june 2017. ISSN 2077-5822. Available at: <http://qu.edu.iq/journalagr/index.php/QJAS/article/view/16>. Date accessed: 26 sep. 2018.
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Articles