Price and Non-Price Factors for Agricultural Development under New Economic Policies

Abstract

This note first briefly discusses the new economic policies as they pertain to the agricultural sector. It then formally tests the impact of relative farm prices which these policies aim to improve and the non-price factors on both aggregate agricultural output and marketed surplus considering the Nerlovian type of Partial adjustment model. These are discussed for both pre- and post-Green Revolution periods. Finally, based on the results of these models policy suggestions are offered for product price support and non-product price factors.