# Econometric Model

Submitted By Tasnuva125
Words 4341
Pages 18
The yields of crops in per hectare are low in Bangladesh compare to other countries. The farm prices of produces also low which turn in low income from farm and low purchasing power and low access to food. On the other hand, raising food price is a major concerning issue for the government of Bangladesh. For the stable food price and food, security government has adopted various strategies such as efforts to increase production, intervention in markets, public distribution, direct sales, increase in import and purchase from local markets for the maintenance of national food security stocks, which aims to increase welfare of the poor. In a subsistence agrarian economy of Bangladesh, domestic food production has an important role to play in the quest for food security. The productivity in the agricultural sector is critically important if agricultural production is to increase at a sufficiently rapid rate to meet escalating demands for food.

Materials and Methods:
The study is based on the secondary data from the Bangladesh Bureau of Statistics (BBS), Handbook of Agriculture Statistics, Ministry of Agriculture, Bangladesh Bank (Central Bank) reports, FAOSTAT and other published. The data used cover the 25 years period from 1980 to 2005. The non-availability of time-series price data prior to 1980/81 is the main reason for selecting the data period from 1981/82. The data are on annual averages because of the lack of monthly data.

Specification of the Theoretical Model:
The theoretical model of estimated function of rice paddy is: QS =α₀+α1RPSt+α2RSYt+α3RIAt +α4FSt +α5PRt +εt Where, QS is quantity supplied at current year (kg/capita/year), RPt is Rice Production (Seasonal), RSY t is the rice seasonal yield, RIA t is rice irrigated area, FS t is fertilizer sales, PR t is the price of rice of the wholesalers.

1

Identification of the variables:...

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