Estimation of peach supply response in Colombia using a Vector Error Correction Model

An empirical study of peach supply response to own-price and yield in Colombia using time series data from 2000 2018 was undertaken. A quantitative, correlational non-experimental research design selected the Johansen´s co-integration as well vector error correction framework were employed. The Augmented Dickey-Fuller test showed that integrated order one confirmed existence a long-term relationship between variables. Moreover, short long run coefficients for statistically significant presented expected signs, however, estimated elasticity below unit suggesting it is not an important factor response. Furthermore, coefficient (-0.32) negative line with theory, which long-run, model converges towards equilibrium, however at relatively slow pace. Therefore, can be concluded that, overall, proposed contributes understanding dynamics output supply.