The Firm Level Supply Response of Flue-cured Virginia Tabacco in Malaysia

• Main Authors: Mohd Noor Mamat (Author), Zaimah Darawi (Author), Kraft, Steven E. (Author)
• Format: Book
• Language: English
• Published: Kuala Lumpur Malaysian Agricultural Research and Development Institute (MARDI) 1988
• Series: MARDI report
• Subjects: Tobacco > Malaysia
• Online Access: Click Here to View Status and Holdings.
• Physical Description: 8 pages 26 cm
• Bibliography: Includes bibliographical references
• ISBN: 9679360229
• ISSN: 0127-4007

This book analyzes the firm-level response of cured tobacco in Malaysia from 1980 to 1983. Using Generalized Least Squares multiple regression, the analysis examines the relationship between weighted production of cured tobacco and lagged price, lagged revenue, and firm size dummy variables. The findings suggest that operators of curing firms do not respond quickly to price increases alone but do respond to changes in total revenue. This indicates that policies focusing on price manipulation and research for enhanced curing technology, implemented by the Malaysian National Tobacco Board, could be effective at this level of the industry. However, if the National Tobacco Board aims to increase cured tobacco production in the short run, it should concentrate on the price of fresh tobacco, as it exhibits a highly elastic price elasticity of supply.