Time series econometric estimation of supply equation for Malaysian rice sector

Rice production in the country is characterized by two production seasons namely, main- season and off-season. Officially, the two production seasons data usually aggregated to form single data of domestic rice supply for the nation. This aggregation is refers to as all-season rice production. All t...

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Main Authors: Umar, Haruna Suleiman, Abdullah, Amin Mahir, Shamsudin, Mad Nasir, Mohamed, Zainal Abidin
Format: Article
Published: Asian Economic and Social Society 2014
Online Access:http://psasir.upm.edu.my/id/eprint/35853/
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author Umar, Haruna Suleiman
Abdullah, Amin Mahir
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
author_facet Umar, Haruna Suleiman
Abdullah, Amin Mahir
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
author_sort Umar, Haruna Suleiman
building UPM Institutional Repository
collection Online Access
description Rice production in the country is characterized by two production seasons namely, main- season and off-season. Officially, the two production seasons data usually aggregated to form single data of domestic rice supply for the nation. This aggregation is refers to as all-season rice production. All the previous studies estimated supply equation based on the aggregated data thereby denying the opportunity of having a comprehensive insight into the structural relationship exist in the off-and-main season?s rice production necessary for holistic policy analysis and decision. Hence, this study attempted estimating supply equation by disaggregation into main-season, off-season, and all-seasons? rice production equations. Time series data (1980-2012) were collected and analyzed using both co-integration and non-co-integration approaches. For valid inference, estimated coefficients were subjected to autocorrelation, heteroskedasticity, misspefication and structural stability diagnostic-tests. The results show that estimated coefficients for main-season and off-season paddy production equations exhibited common characteristics in terms of economic and statistical properties. Therefore, the estimated coefficients for all-season paddy production, which represents the aggregate information of main and off- season?s paddy production, could still be adopted to explain relationship in supply side of the rice sector.
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spelling upm-358532016-02-10T08:48:50Z http://psasir.upm.edu.my/id/eprint/35853/ Time series econometric estimation of supply equation for Malaysian rice sector Umar, Haruna Suleiman Abdullah, Amin Mahir Shamsudin, Mad Nasir Mohamed, Zainal Abidin Rice production in the country is characterized by two production seasons namely, main- season and off-season. Officially, the two production seasons data usually aggregated to form single data of domestic rice supply for the nation. This aggregation is refers to as all-season rice production. All the previous studies estimated supply equation based on the aggregated data thereby denying the opportunity of having a comprehensive insight into the structural relationship exist in the off-and-main season?s rice production necessary for holistic policy analysis and decision. Hence, this study attempted estimating supply equation by disaggregation into main-season, off-season, and all-seasons? rice production equations. Time series data (1980-2012) were collected and analyzed using both co-integration and non-co-integration approaches. For valid inference, estimated coefficients were subjected to autocorrelation, heteroskedasticity, misspefication and structural stability diagnostic-tests. The results show that estimated coefficients for main-season and off-season paddy production equations exhibited common characteristics in terms of economic and statistical properties. Therefore, the estimated coefficients for all-season paddy production, which represents the aggregate information of main and off- season?s paddy production, could still be adopted to explain relationship in supply side of the rice sector. Asian Economic and Social Society 2014 Article PeerReviewed Umar, Haruna Suleiman and Abdullah, Amin Mahir and Shamsudin, Mad Nasir and Mohamed, Zainal Abidin (2014) Time series econometric estimation of supply equation for Malaysian rice sector. Asian Journal of Empirical Research, 4 (9). pp. 455-467. ISSN 2224-4425; ESSN: 2306-983X http://econpapers.repec.org/article/asiajoerj/2014_3ap_3a455-467.htm
spellingShingle Umar, Haruna Suleiman
Abdullah, Amin Mahir
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
Time series econometric estimation of supply equation for Malaysian rice sector
title Time series econometric estimation of supply equation for Malaysian rice sector
title_full Time series econometric estimation of supply equation for Malaysian rice sector
title_fullStr Time series econometric estimation of supply equation for Malaysian rice sector
title_full_unstemmed Time series econometric estimation of supply equation for Malaysian rice sector
title_short Time series econometric estimation of supply equation for Malaysian rice sector
title_sort time series econometric estimation of supply equation for malaysian rice sector
url http://psasir.upm.edu.my/id/eprint/35853/
http://psasir.upm.edu.my/id/eprint/35853/