Cotton supply response to price and non-price incentives in Togo: an error correction model.

摘要

The promotion of the cotton sector through incentives policies in Togo focuses mainly on price policies. Based on 1966-1995 time series data, the supply response functions were estimated for two main cotton producing zones in Togo. First the resultsindicate that price policies have not positively influenced cotton supply before and during Structural Adjustment Programmes (SAP). Cotton and maize that are complements before SAP become substitutes during SAP and in the long run. Conversely cotton andsorghum-millet remain complements before, during SAP and in the long run. Second the non-price factors such as investment have positively influenced cotton supply before and during SAP in both producing zones before and during SAP. Policy makers shouldincorporate both factors with greater emphasis on the non-price factors in future cotton policies design in Togo.