Agricultural Supply Response in Sub‐Saharan Africa: A Critical Review of the Literature

Abstract

Abstract: Both price and nonprice elasticity estimates are important in understanding the relative importance of these factors in aggregate agricultural supply behavior and they form part of the critical inputs in macroecomic reforms of most of Sub‐Saharan Africa (SSA). However, elasticity estimates must be obtained from models that approximate the realities of the these economies if these elasticities are to be relied upon for policy prescriptions.Using our knowledge of six countries in SSA namely, Cameroon, Kenya, Malawi, Nigeria, Senegal and Tanzania, we demonstrate that the empirical literature on agricultural supply behavior in SSA is full of models that are deficient either in their methodology or choice of relevant explanatory variables. This is because the models failed to recognise the structure of agricultural production in these countries and over simplified the issues and constraints facing the farmers.A thorough discussion of these issues and constraints should form part of the empirical analysis and, should also, moderate the claims of the models. These discussions are very useful since an understanding of the factors that explain the obtained elasticities are as/important as the elasticities themselves.RésuméLes estimations de I'élasticité des prix comme des facteurs non liés aux prix sont nécessaires pour comprendre I'importance de ces facteurs dans le comportement de l'offre agricole globale; elles font partie des éIéments qui entrent pour une part déterminante dans les réformes macro économiques de la plupart des pays de 1'Afrique subsahanenne. C'est cependant à partirde modèles qui sont proches des réalités de ces économies qu'il faut obtenir des estimations d'élasticités si l'on veut s'appuyer sur ces élasticités pour prescrire des remèdes en matière de politiques internes.