New Economics Papers
on Agricultural Economics
Issue of 2005‒10‒04
eight papers chosen by

  1. The Consequences of Agricultural Trade Liberalization for Developing Countries: Distinguishing Between Genuine Benefits and False Hopes By Jean-Christophe Bureau; Sébastien Jean; Alan Matthews
  3. AGRICULTURAL GROWTH AND PRICE FLUCTUATIONS: A Case Study of Production and Prices of Potato in Tripura By Prof. Purusottam Nayak; Prof. P.R. Bhattacharjee
  4. Dairy Markets in Asia: An Overview of Recent Findings and Implications By Beghin, John C.
  5. From Bound Duties to Actual Protection: Industrial Liberalisation in the Doha Round By Hedi Bchir; Lionel Fontagne; Sebastien Jean
  6. Common Labels and Market Mechanisms By Boizot-Szantai, Christine; Lecocq, Sébastien; Marette, Stéphan
  7. What Can the United States Learn from Spain’s Pork Sector? Implications from a Comparative Economic Analysis By Lence, Sergio H.

  1. By: Jean-Christophe Bureau; Sébastien Jean; Alan Matthews
    Abstract: Recent analyses suggest that the impact of agricultural trade liberalization on developing countries will be very uneven. Simulations suggest that the effects of agricultural trade liberalization will be small, overall, and are likely to be negative for a significant number of developing countries. The Doha Round focuses on tariff issues, but some developing countries currently have practically duty-free access to European and North American markets under preferential regimes. Multilateral liberalization will erode the benefits of these preferences, which are presently rather well utilized in the agricultural sector. While South American and East Asian countries should benefit from an agricultural agreement, African and Caribbean countries are unlikely to do so. The main obstacles to the exports of the sub-Saharan African and Least Developed Countries appear to be in the non-tariff area (sanitary, phytosanitary standards) which increasingly originate from the private sector and are not dealt with under the Doha framework (traceability requirements, etc.). An agreement in Doha is unlikely to solve these problems and open large markets for the poorest countries. While this is not an argument to give up multilateral liberalization, a more specific and differentiated treatment should be considered in WTO rules, and corrective measures should be implemented.
    Keywords: Agricultural trade liberalization; WTO; developing countries
    JEL: F13 Q17
    Date: 2005–08
  2. By: Prof. Purusottam Nayak (North-Eastern Hill University)
    Abstract: Water is one of the most vital natural resources used not only for direct consumption purposes but also as an input in the process of production in different sectors of the economy of which agriculture is the most important. One of the salient characteristics of water is that in addition to the fact of its being an indispensable input it works as an augmenting input in agriculture when it is combined with other inputs of production such as improved seeds (HYV) and fertilizer. Thus it has a tremendous role to play in agriculture in increasing both production and productivity. It helps in bringing wasteland under crops, in adopting multiple cropping practices and in raising greater quantities of the same crop on the same plot. Most importantly, irrigation generates an element of stability in agriculture by partly freeing it from the vagaries of monsoon. The present work in this regard is an attempt to study the role and use of water in the agricultural sector in the North Eastern States.
    Keywords: Water Resource and Agricultural Production
    JEL: A
    Date: 2005–09–26
  3. By: Prof. Purusottam Nayak (North-Eastern Hill University); Prof. P.R. Bhattacharjee
    Abstract: Like industrial development, agricultural growth also requires a leading sub-sector to generate dynamism in production, capital formation and technology. A predominantly cash crop like potato has the potential to play such a leading role in rural development in North East India. In terms of total production of energy for human consumption, potato is one of the five major crops in the world, others being wheat, rice, maize and barley. On an average, potato yields two times more calories per unit area than any other cereal. In Tripura also, potato as a crop has been associated with agricultural diversification and modernization. The area under cultivation of potato has increased remarkably during the plan period. The trend in productivity is also encouraging considering the overall backwardness of Tripura’s economy especially, the prevalence of peasant and tribal mode of production in the rural area. In spite of these encouraging signs, one cannot say that producers are getting adequate incentive for higher work and investment efforts from market behaviour. One important obstacle to further development in respect of potato cultivation is created by price fluctuations of this agricultural product. It affects both the producer and the consumer by creating a wide difference between the average annual price that the consumers pay and the price that the producers receive. The present paper is intended to be an attempt to understand the problems associated with growth and price fluctuations of potato in Tripura. The thrust of the study will be on the analysis of the nature and causes of price fluctuations and to suggest measures with a view to ensuing sustained development in respect of this important agricultural crop.
    Keywords: Agricultural Growth and Potato Price Fluctuations
    JEL: A
    Date: 2005–09–23
  4. By: Beghin, John C.
    Abstract: This paper is an overview of important findings regarding the ongoing evolution of Asian dairy markets based on a series of new economic investigations. These investigations provide systematic empirical foundations for assessing Asian dairy markets with their new consumption patterns, changing industries, and trade prospects under different domestic and trade policy regimes. The findings are drawn from four case studies (China, India, Japan, and Korea), as well as a prospective analysis of future regional patterns of consumption and a policy analysis of trade liberalization of Asian dairy markets. The overview distills the findings of these new investigations and integrates them in the earlier economic literature; it draws policy implications and identifies lessons for countries outside of Asia, especially for emerging exporters in Latin America.
    Keywords: Asia, China, dairy, India, Japan, Korea, liberalization, trade integration.
    Date: 2005–09–28
  5. By: Hedi Bchir; Lionel Fontagne; Sebastien Jean
    Abstract: This study proposes a CGE assessment of multilateral liberalisation of non-agricultural market access. Scenarios considered include the so-called Girard proposal (with alternative choices for the involved coefficient), the removal of tariff peaks and complete liberalisation. This study is the first one to take duly into account the difference between bound and applied tariffs, while accounting for all enforced preferential trade arrangements and computing tariff cuts at the detailed product level (HS-6 classification). While non-agricultural market access liberalisation is found to be welfare-enhancing at the world level, cross-country distributive impacts prove significant. A soft liberalisation would not lower significantly applied duties in developing countries, due to their significant binding overhang. In contrast, a deep liberalisation would entail fierce price-competition between developing countries, largely specialised on similar sectors and on the same quality range.
    Keywords: Doha development agenda; applied tariffs; preferential trade agreements; binding overhang; computable general equilibrium model
    JEL: D58 F12 F13
    Date: 2005–07
  6. By: Boizot-Szantai, Christine; Lecocq, Sébastien; Marette, Stéphan
    Abstract: In this article, the impact of common labels is investigated with both theoretical and empirical approaches. Recent statistics regarding the egg market in France suggest that retailer brands largely adopt common labels. A simple theoretical framework enables us to determine the conditions under which producers and/or retailers with different product qualities decide to post a common label on their products. In particular, a situation of multiple equilibria (one where the label is used by the high-quality seller only and one where it is used by the low-quality seller only) is exhibited when the cost of the label is relatively large. The demand is then estimated for different segments of the French egg market, including producer/retailer brands with/without common labels. The estimates are used to derive expenditure and price elasticities and allow us to calculate welfare measures revealing a relatively large willingness-to-pay for labels.
    Keywords: competition, demand estimation, labels, product differentiation.
    Date: 2005–09–28
  7. By: Lence, Sergio H.
    Abstract: This study provides a comparative economic analysis of the primary production of pork and its marketing channel in Spain and the United States. The focus on Spain is due to the profound growth and transformation of its pork sector over the last 20 years, compared with other major players in the world market for pig meat. The analysis reveals a number of similar characteristics but also important differences between the two countries. The significant expansion of Spain’s pork production sector stemmed from a number of factors that apply, to a relatively large extent, to some U.S. states (in particular, North Carolina) but do not apply to the U.S. pork production sector as a whole. This implies that it is unlikely that the U.S. pork production sector as a whole will mimic an expansion driven by the same type of factors in the future. Likewise, it seems highly unlikely that the U.S. consumption of pig meat will expand in the future based on the same driving forces behind the sharp increase in Spain’s domestic demand for pig meat over the last 20 years. The analysis also indicates that Spanish pig producers are currently being subjected to more stringent environmental and animal welfare regulations than their U.S. counterparts and that these regulations are becoming increasingly more restrictive. It would not be surprising to see similar trends emerging in the United States, leading to a substantially more restrictive regulatory environment for U.S. hog producers.
    Keywords: comparative analysis, hog marketing channel, Spain pork industry, U.S. pork industry.
    Date: 2005–09–27
  8. By: Prof. Purusottam Nayak (North Eastern Hill University); Dr. B. Mishra (North Eastern Hill University)
    Abstract: In recent years, most of the countries across the globe are in a sweeping mood to promote micro finance institutions not only as a positive rural development intervention but also as a rural development panacea. Allured by the success of micro credit institutions in developed countries, the developmental economists in under developed and developing economies have increasingly become enthusiastic in the promotion of micro credit as a rural development intervention by tying it neatly with post-liberal development ideology. In the Indian context, the frenzied promotional activity of the micro credit institutions derive in part from the political slogan of ‘Garibi Hatao’ of the Union Government in mid 70’s by the establishment of Grameen Banks which were the offshoot of the putative success of Developmental Financial Institutions in the West. Although the basic philosophy behind the micro credit movement is to eradicate poverty as it stimulates the growth of micro enterprises by developing new markets and by promoting a culture of entrepreneurship, it involves minimal state intervention, thereby shifting the focus of attention away from the society towards individuals. The experience of micro credit schemes in Asia, Africa and South America describes altogether a different story by negating this particular aspect of development intervention. This serves the starting point of the present paper in considering micro credit as the limiting factor of rural development intervention. No doubt, the limits arise from the individualistic focus of the intervention. Keeping consistency with the title of the paper, it not only explores the limitations of micro credit as a rural development intervention through a survey of literatures but also makes an attempt to bring to the focus the concept of rural micro finance in which the issues of credit markets and the poor are explored. The objective of bringing the above discussion to the forefront is to assess the potential impact of micro finance institutions as development interventions. Finally, attempt is made to look at the conditions which limit the effectiveness of micro finance institutions as development interventions in different parts of the globe including India.
    Keywords: Micro Credit Rural Development
    JEL: A
    Date: 2005–09–29

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