An econometric analysis of the demand for fertilizer in Tanzania

The purpose of this study is to quantify the economic factors which influenced the demand for fertilizers in Tanzania for the period 1970 - 1980. Therefore the hypotheses which have been tested in this study are that the demand for fertilizers is positively related to fertilizers own prices. And that it is negatively related to acreage of land cultivated and fertilized to cash income from sales of crops which used fertilizers in their production. In the first chapters this study gives analysis of the theory of demand and of empirical work on fertilizers demand in Pakistan. Then from single equation models econometric analysis is made. The empirical findings support the hypotheses on the relationships between the demand for fertilizers versus acreage of land cultivated and fertilized and also versus cash income from sales of crops which used fertilizers in their production. But they do not support the hypothesis on the relationship between the demand for Fertilizers versus fertilizers own prices at least for the period under study. In the light of the above findings the basic policy conclusion emerging is that since this study is a partial analysis of the market of fertilizers, we are partially recommending for increase in cash income from sales of crops which taped fertilizers in their production so as to increase the use of fertilizers in Tanzania.