An Estimation of Rice Output Supply Response in Sierra Leone: A Nerlovian Model Approach

Rice grain is Sierra Leone’s staple food and the nation
imports over 120,000 metric tons annually due to a shortfall in its
cultivation. Thus, the insufficient level of the crop's cultivation in
Sierra Leone is caused by many problems and this led to the
endlessly widening supply and demand for the crop within the
country. Consequently, this has instigated the government to spend
huge money on the importation of this grain that would have been
otherwise cultivated domestically at a cheaper cost. Hence, this
research attempts to explore the response of rice supply with respect
to its demand in Sierra Leone within the period 1980-2010.
The Nerlovian adjustment model to the Sierra Leone rice data set
within the period 1980-2010 was used. The estimated trend equations
revealed that time had significant effect on output, productivity
(yield) and area (acreage) of rice grain within the period 1980-2010
and this occurred generally at the 1% level of significance. The
results showed that, almost the entire growth in output had the
tendency to increase in the area cultivated to the crop. The time trend
variable that was included for government policy intervention
showed an insignificant effect on all the variables considered in this
research. Therefore, both the short-run and long-run price response
was inelastic since all their values were less than one.
From the findings above, immediate actions that will lead to
productivity growth in rice cultivation are required.
To achieve the above, the responsible agencies should provide
extension service schemes to farmers as well as motivating them on
the adoption of modern rice varieties and technology in their rice
cultivation ventures.

• Alhaji M. H. Conteh
• Xiangbin Yan
• Issa Fofana
• Brima Gegbe
• Tamba I. Isaac

• Nerlovian adjustment model
• price elasticities
• Sierra Leone
• Trend equations.

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