Examining the Input and Output Linkages in Agricultural Production Systems

This paper conducts a comprehensive analysis of the agricultural sector’s resource allocation and production decisions. uses differential systems with quasi-fixity to evaluate complete system, which examines input output linkages in terms elasticities. The are estimated using maximum likelihood estimation technique based on two-step profit-maximizing procedure theory. results reveal that livestock requires more intermediate inputs, but crop depends all such as labor, capital, inputs. In addition, show demand is inelastic, indicating sector has little flexibility adjusting for inputs response changes prices. Substitutable relationships among exist, may reduce pressures costs when prices rise. Regarding quasi-fixed input, land expansion composition labor showing reduces intensive margin it pursues extensive margin. Furthermore, supply not very responsive respective price changes. Along inelastic supply, there exist substitutable between relative can alter supply. also reallocates areas into rather than production.