New Economics Papers
on Agricultural Economics
Issue of 2010‒01‒30
forty-two papers chosen by

  1. Livestock and water interactions in mixed crop-livestock farming systems of Sub-Saharan Africa: interventions for improved productivity By Descheemaeker, Katrien; Amede, Tilahun; Haileslassie, A.
  2. A Century of Rice Innovations By Saturnina C. Halos
  3. Contractual Arrangements in Agriculture (Northern and Central Luzon Component) By Alma M. dela Cruz
  4. Agricultural Contracts in Mindanao- the Case of Banana and Pineapple By Larry N. Digal
  5. Climate Variability, SCF, and Corn Farming in Isabela, Philippines- a Farm and Household Level Analysis By Celia M. Reyes; Sonny N. Domingo; Christian D. Mina; Kathrina G. Gonzales
  6. Profitable Use of SCF in a Policy Context- the Case of Rice Stockholding in the Philippines By Celia M. Reyes; Christian D. Mina
  7. Assessing the Value of SCFs on Farm-level Corn Production through Simulation Modeling By Celia M. Reyes; Kathrina G. Gonzales; Canesio D. Predo; Rosalina G. de Guzman
  8. Food Availability and Food Entitlements during the Chinese Great Leap Forward Famine: A dynamic panel data analysis (In French) By Matthieu CLEMENT (GREThA UMR CNRS 5113)
  9. The Evolution of Rice Production Practices By Eulito U. Bautista; Evelyn F. Javier
  10. Chinese Agricultural Reform, the WTO and FTA Negotiations By Shunli Yao
  11. Land Rental Market Activity in Agrarian Reform Areas- Evidence from the Philippines By Marife M. Ballesteros; F. Bresciani
  12. Rice and Philippine Politics By Ponciano S. Intal Jr.; Marissa C. Garcia
  13. Market Access Limitations of the Philippines in the EU Market By Gloria O. Pasadilla
  14. The Determination of Contracts in Agricultural Economies By Leonardo A. Lanzona
  15. The Impact of a Philippine-US FTA- The Case of Philippine Agriculture By U-Primo E. Rodriguez; Liborio S. Cabanilla
  16. Market-Based Approaches to Environmental Management: A Review of Lessons from Payment for Environmental Services in Asia By Bhim Adhikari
  17. Agriculture and Political Reform in Japan- The Koizumi Legacy By Aurelia George Mulgan
  18. The LGU Extension Services in a Major Rice-Growing Area- The Case of Hagonoy, Davao del Sur By Rosa Fe D. Hondrade
  19. CARP Institutional Assessment in a Post-2008 Transition Scenario- Implications for Land Administration and Management By Marife Ballesteros; Felino Cortez
  20. Green Revolutions and Miracle Economies - Agricultural Innovation, Trade and Growth By Brishti Guha
  21. An input-output approach in assessing the impact of extensive versus intensive farming systems on rural development: the case of Greece By Elias Giannakis
  22. Importance of irrigated agriculture to the Ethiopian economy: capturing the direct net benefits of irrigation By Hagos, Fitsum; Makombe, Godswill; Namara, Regassa E.; Awulachew, Seleshi Bekele
  23. Agricultural Demand Linkages and Growth Multiplier in Rural Indonesia By Asep Suryahadi; Daniel Suryadarma; Sudarno Sumarto; Jack Molyneaux
  24. Agricultural Trade Between the Philippines and the US- Status, Issues and Prospects By Liborio S. Cabanilla
  25. The Puzzle of Small Farming in Japan By Yoshihisa Godo
  26. Improving the Business Climate in NTT- The Case of Agriculture Trade in West Timor By Widjajanti Isdijoso Suharyo; Sudarno Sumarto; Nina Toyamah; Adri Poesoro; Bambang Sulaksono; Syaikhu Usman; Vita Febriany; Harry D.J. Foenay; Rowi Kaka Mone; Thersia Ratu Nubi; Yakomina W. Nguru
  27. Business Marketing of the Agricultural Co-operatives Association in Aomori Prefecture in the l900s and l920s: Building Cooperative Relationships among the Association, Associate partners, and Wholesalers By Izumi Shirai
  28. Rice that Filipinos Grow and Eat By John C. de Leon
  29. The political economy of Land Reform: A new perspective applied to Latin America By Miguel Rocha de Sousa
  30. Rice in the Filipino Diet and Culture By Filomeno V. Aguilar, Jr.
  31. Unfair agricultural prices cause hunger and resources dilapidation By António Cipriano Pinheiro
  32. Land Reform and Changes in Land Ownership Concentration- Evidence from Rice-Growing Villages in the Philippines By Marife Ballesteros; Alma dela Cruz
  33. Economic gains of improving soil fertility and water holding capacity with clay application: the impact of soil remediation research in northeast Thailand By Saleth, Rathinasamy Maria; Inocencio, Arlene; Noble, Andrew D.; Ruaysoongnern, S.
  34. Mapping drought patterns and impacts: a global perspective By Eriyagama, Nishadi; Smakhtin, Vladimir; Gamage, Nilantha
  35. The Factor Content of Heterogeneous Firm Trade By d’Artis Kancs; Pavel Ciaian
  37. Preferential Trading Agreements and Agricultural Liberalization in East and Southeast Asia By Gloria O. Pasadilla
  38. Poverty and Vulnerability in rural China: Effects of Taxation By Katsushi S Imai
  39. Willingness to Pay for Biodiversity Conservation By Amit K. Bhandari; Almas Heshmati
  40. Testing Value vs Waiting Value in Environmental Decisions under Uncertainty By Giuseppe Attanasi; Aldo Montesano
  41. Impact of Supermarkets on Traditional Markets and Retailers in Indonesia's Urban Centers By Daniel Suryadarma; Adri Poesoro; Sri Budiyati; Akhmadi; Meuthia Rosfadhila
  42. Information Technology in Rural Areas: Waiting for the Revolution By Eathington, Liesl; Swenson, David A.

  1. By: Descheemaeker, Katrien; Amede, Tilahun; Haileslassie, A.
    Keywords: Farming systems / Livestock / Water productivity / Water scarcity / Land degradation / Feed production / Fodder / Grazing systems / Animal production / Food production / Policy
    Date: 2009
  2. By: Saturnina C. Halos (Philippine Institute for Development Studies)
    Abstract: Rice innovations are technologies and practices extensively adopted so as to change production practices and productivity. This paper documents the changes in rice productivity, policy and institutions in the last 100 years and identifies the technological change that may have affected rice productivity. One hundred years has totally changed rice production practices and improved productivity. Technical innovations that helped improved rice productivity include irrigation, pest management notably, the management of locust outbreaks, fertilization, modern varieties, farm mechanization, improved rice milling and crop rotation. Irrigation increased productivity and the total annual area planted to rice. More technologies associated with irrigated lowland rice cropping were developed and disseminated subsequently rice productivity in irrigated areas is higher than in other areas. The rice innovation system comprised of technology developers, innovators or promoters of technologies and their delivery systems. Technology developers include public institutions like BA/BPI, UPCA/UPLB, IRRI, PhilRice, other SUCs as well as agri-input companies. NGOs are recent technology developers as well as innovators. The major innovator is the government, the Department of Agriculture with its rice programs. Of its various rice programs, the Masagana 99 Program revolutionized rice production with its legacy of farmers receptive to technological change. Rice productivity slowly rose from 0.832 MT/ha in 1903 to 3.28 MT/ha in 2002, this latter represents only half of possible maximum yield. This slow rate of productivity increase is due mainly to slow adoption of new technologies rather than lack of new technologies. Of the critical technologies contributory to yield, only the use of modern varieties is extensively adopted whereas irrigation, fertilization and pest management practices are yet to be extensively applied. Further improvements in the government rice program, in the extension system and new technology designs are needed to improve technology adoption. Technology developers should include in the design of technology its acceptability and its delivery strategy to rice farmers. Other considerations in technology design should include global warming, decreasing water supply, and environmental protection. Needless to say, investments in RDE must be increased and improvements in the R & D climate to retain rice scientists versed in new methodologies in the country must be made.
    Keywords: rice, innovation, productivity, innovation system, rice policy
    JEL: Q16 Q18 Q10
    Date: 2010–01
  3. By: Alma M. dela Cruz (Philippine Institute for Development Studies)
    Abstract: This study aimed to characterize and analyze the various contractual arrangements in selected agricultural commodities in parts of Central and Northern Luzon. Specifically, the objectives are to- i) characterize the nature, process and degree of various agricultural contracts involved in the production and marketing of mangoes, hogs, rice and selected vegetables and, ii) analyze the implications of the various contracting arrangements in these commodities in terms of efficiency and equity. The research sites for this study consist of major producing provinces of the four specified commodities in selected parts of Northern and Central Luzon regions. For mango, Calasiao and San Carlos in Pangasinan, Iba and Masinloc in Zambales and Munoz in Nueva Ecija served as the study areas. For lowland vegetables, the municipalities of Talavera, Aliaga and San Jose City in Nueva Ecija, were primarily selected as study sites being major producers of eggplant, tomato, okra, onions and other vegetables. For hogs, Talavera, Munoz and San Jose City in Nueva Ecija where integrators and key informants are located constitute the sites of the study. The nature, process and degree of the different contracting systems in the four selected agricultural commodities have been diverse. In most cases, however, the different contracts were outcomes of the farmers’ need to adjust to the different production and market conditions surrounding the agricultural sector. The pervasiveness of sharecropping in many agricultural crops such as mango, rice and vegetables underscore the farmers’ difficulty in raising capital, due to missing credit and insurance markets. The associated risks, seasonality and specialized nature of agricultural production have likewise complicated the production processes and patterns of contracts in these commodities. Access to credit and marketing institutions and functioning of insurance markets are essential for the transformation of subsistence-oriented asset-poor farmers.
    Keywords: Agricultural contracts, marketing, agricultural production, rice and mango production, contractual arrangements, agriculture sector
    JEL: Q15 Q13 Q10 L66
    Date: 2010–01
  4. By: Larry N. Digal (Philippine Institute for Development Studies)
    Abstract: Contract growing has been defined as an agreement between farmers and processing and/or marketing firms under forward agreements, usually at predetermined prices for the production and supply of agricultural products (Eaton and Shepherd 2001). As such, it offers a solution to a number of production and marketing problems that lead to low farm productivity and profitability. These problems plague the agricultural sector and contribute to the high poverty incidence in the rural sector particularly in many areas in Mindanao. On the other hand, Mindanao, being groomed as the country’s food basket, shows an example on how contract growing can address various marketing and production problems in the farm sector. This is demonstrated in industries that serve as the lifeblood of Mindanao’s economy for many years such as banana and pineapple. Production of these commodities including asparagus, corn, and poultry was pioneered mainly by multinationals and large agribusiness firms in the island-region. While the market and technological factors largely affect the viability of the contract growing scheme of a particular commodity, there are other factors that are equally important in determining its performance. These include the infrastructure conditions, peace and order, credit accessibility, and government policies that affect the industry as a whole such as the implementation of the Comprehensive Agrarian Reform Program (CARP) and trade liberalization policies. Thus, aside from the economic and technological conditions, the policy environment affecting both demand supply conditions plays an important role in examining the impact of contract growing scheme in Mindanao’s agricultural development. While contract growing scheme offers a way to enhance competitiveness of Mindanao’s agricultural sector by increasing production efficiency, accelerating technology transfer, improving quality, and linking small farms to large markets, there are a number of fundamental issues that arise from this scheme. These are the issues of equity and sustainability. This study aims to understand the nature of contract farming in Mindanao, identify problem areas and opportunities and analyze its implications to Mindanao’s agricultural sector particularly in terms of efficiency, equity and sustainability. Agricultural contracts in banana and pineapple were analyzed using the principal-agent framework. The structure conduct performance (SCP) model was used to incorporate the analysis of external factors affecting the contract or the project such as demand and supply conditions as well as government policies. Primary data were gathered through structured interviews with key informants such as farmers or growers, contractors and relevant government agencies, and nongovernment organizations. These primary data focused mainly on the contracts of bananas and pineapple. Secondary data were also generated primarily through literature reviews. In addition, information on external conditions affecting the performance of agricultural contracts such as government policies and socio-economic factors were gathered.
    Keywords: Agricultural contracts (banana and pineapple), production, contract growing, marketing, contractual arrangements
    JEL: Q15 Q13 Q10 L66
    Date: 2010–01
  5. By: Celia M. Reyes; Sonny N. Domingo; Christian D. Mina; Kathrina G. Gonzales (Philippine Institute for Development Studies)
    Abstract: Seasonal Climate Forecast (SCF) is one of the tools, which could help farmers and decision makers better prepare for seasonal variability. Using probabilistic principles in projecting climatic deviations, SCF allows farmers to make informed decisions on the proper choice of crop, cropping schedule, levels of input and use of mitigating measures. However, a cloud of uncertainty looms over the true value of SCF to its target users. To shed light on the true value of SCF in local agricultural decision making and operations, farm and household level survey was conducted. A total of 85 corn farmers from the plains and highlands of Echague and Angadanan, Isabela were interviewed. Results showed that climate and climate-related information were undoubtedly among the major factors being considered by farmers in their crop production activities. All aspects explored on the psychology of corn growers pointed to the high level of importance given to climatic conditions and SCF use. This was evident on the farmers’ perceptions, attitudes, and decision-making processes. Though the high regard of farmers on climate forecast and information cannot be questioned, actual application of such information seemed still wanting. Most corn farmers still started the season by “feel�— relying on the coming of rains and usual seasonal cropping schedules when commencing key farm operations. Reliable indigenous knowledge on climate forecasting was scarce. With corn farmers in Isabela still thirsting for climate-related information, the delivery of appropriate information and accurate forecasts should be addressed through proper extension and provision of support. Overall, SCF still has to solidify its role in the decision making process. Reliable SCFs remain the key to answer the riddle of seasonal variability and allow farmers to securely harness the goodness of the changing seasons. Ultimately, a holistic approach is necessary to truly elevate the productivity in Isabela’s corn lands.
    Keywords: Seasonal climate forecast, corn productivity, Isabela corn industry, climate variability, climate information and corn farming
    JEL: Q12 Q10 Q54
    Date: 2010–01
  6. By: Celia M. Reyes; Christian D. Mina (Philippine Institute for Development Studies)
    Abstract: This paper documents the activities of the National Food Authority (NFA), particularly on rice marketing, in realizing its mandates of buying high and selling low. Because the Philippine agriculture is greatly affected by extreme climate events such as El Niño and La Niña, this paper highlights the importance of seasonal climate forecast (SCF) information as input to the formulation of various policy decisions of the NFA. Among these important policy decisions are- how much volume of paddy rice to procure from farmers to be able to defend its support price; how much volume of rice to maintain in order to achieve stability in the supply and consumer price, and; how much volume of rice, as well as when is the best time, to import to be able to position the optimal level of stocks in time for the lean season. It is also argued in the paper that importation has been playing a significant role in the rice supply-demand situation of the country since 1990, making it one of the most significant government interventions in the rice sector. Based on historical data assessment, some of the worst events in the past such as the 1995 rice crisis and over-importation during the 1997-1998 El Niño could have been avoided if policy decisions, particularly on the volume and timing of rice importation, were linked to SCF. Indeed, linking crop production and import decisions more systematically with SCF would enhance the usefulness of these forecasts at a more practical level.
    Keywords: National Food Authority (NFA), Seasonal Climate Forecast (SCF), rice, importation, storage, distribution
    JEL: Q18 Q17 Q10
    Date: 2010–01
  7. By: Celia M. Reyes; Kathrina G. Gonzales; Canesio D. Predo; Rosalina G. de Guzman (Philippine Institute for Development Studies)
    Abstract: Rainfall variability greatly influences corn production. Thus, an accurate forecast is potentially of value to the farmers because it could help them decide whether to grow their corn now or to delay it for the next cropping opportunity. A decision tree analysis was applied in estimating the value of seasonal climate forecast (SCF) information for corn farmers in Isabela. The study aims to estimate the value of SCF to agricultural decision makers under climate uncertainty. Historical climatic data of Isabela from 1951 to 2006 from PAGASA and crop management practices of farmers were used in the Decision Support System for Agrotechnology Transfer (DSSAT) to test the potential impact of climate change on corn. The approach is developed for a more accurate SCF and to be able to simulate corn yields for wet and dry seasons under different climatic conditions -- El Niño (poor year), La Niña (good year) and Neutral (neutral year) conditions. In order for the forecast to have value, the “with forecast� scenario should lead to better decision making for farmers to eventually get increase production over the “without forecast� scenario. While SCF may potentially affect a number of decisions including crop management practices, fertilizer inputs, and variety selection, the focus of the study was on the effect of climate on corn production. Improving SCF will enhance rainfed corn farmers’ decisionmaking capacity to minimize losses brought about by variable climate conditions.
    Keywords: decision tree analysis, seasonal climate forecast (SCF), climate uncertainty, Decision Support System for Agrotechnology Transfer (DSSAT)
    JEL: Q54 Q12 Q10
    Date: 2010–01
  8. By: Matthieu CLEMENT (GREThA UMR CNRS 5113)
    Abstract: The article aims at identifying socioeconomic factors which explain the Chinese famine of 1959-1961. The main hypothesis of this paper is that the radicalism of Great Leap Forward policies generated both a decline of agricultural output (availability problems) and the implementation of an inadequate food distribution policy which penalised rural populations (accessibility problems). An econometrical analysis with provincial panel data for the period 1954-1966 points out the role of bad political choices on the occurrence of the famine and confirms the simultaneous influence of food availability decline and food distribution issues on mortality rates.
    Keywords: Great Leap Froward; famine; food availability; entitlements; dynamic panel data models; generalized method of moments
    JEL: N55 O21 P21 P25 P32
    Date: 2010
  9. By: Eulito U. Bautista; Evelyn F. Javier (Philippine Institute for Development Studies)
    Abstract: In this chapter, a summary of the evolution of major practices in rice production over the last 100 years in the country is presented. These practices essentially evolved out of the changes in the varieties introduced and planted by Filipino farmers, which have to change the manner by which production and postharvest operations have to be done in order to maximize productivity and reduce costs. Varieties were introduced in three major periods- the pre-Green Revolution era dominated mainly by traditional varieties which were planted once a year, the Green Revolution period of 1966 to 1988 which was characterized by the diffusion of modern high-yielding varieties which are planted for two seasons per year, and the post-Green Revolution period from 1989 to the present times. As varieties changed over time, farmers’ practices also changed to attain maximum yield potential of the varieties as well as in response to goals of higher productivity, greater efficiency, and, for the present period, environmental sustainability. From preparing the rice plots to rice milling, operations evolved out of the need for greater efficiency and higher productivity. Although the first period has been characterized by single rice crop per year and field operations were not necessarily done efficiently, farmers were already looking for better alternatives to conduct field tasks that were done either manually or with the use of carabaos. Much of these practices have been romanticized mainly because the social life of farmers and their communities evolved within the conduct of these tasks, often done with the assistance of relatives and neighbors. There were less inputs needed as yield from the traditional cultivars was limited by the plant itself so that labor productivity and time as well as efficiency were of less concern compared to the drudgery in the conduct of manual tasks. The period spanning the introduction and diffusion of short-statured, non photosensitive and early maturing high yield varieties, coupled with the availability of irrigation water from newly constructed irrigation systems, were quite different. Demands for efficiency and time became of greater importance to attain the high yield and double crop potential of these modern varieties. Tasks which formerly were not given attention to, such as fertilizer management, chemical control, threshing and drying suddenly became important to small farmers who suddenly found themselves tillers and managers of their own land due to newly passed land reform law. Techniques and equipment to accomplish these tasks were developed or improved upon so that this period revolutionized the whole rice production system. Research on land preparation, planting, fertilizer management, pest management, harvesting and threshing as well as drying and milling were actively pursued and promoted although farmers were selective in adopting only a few of these new breakthroughs. The International Rice Research Institute led in both the development of these varieties, management practices as well as machinery to answer the needs of farmers at this time. After the Green Revolution, concerns on costs and productivity including sustainability continued to become important as Filipino farmers struggle to sustain productivity gains over the past period while pursuing cost reduction measures as well. While neighboring farmers in Southeast Asia adopt modern practices and big machinery to attain economy of scale, our farmers continue to be selective of technologies that are efficient, inexpensive and with high potential for income generation from the neighboring fields. At this time, the Green Revolution technologies continue to be practiced while some crop care measures such as the integrated pest and nutrient management are further refined. We also see old practices becoming relevant again as the need for more efficient management of the decreasing amount of water becomes vital. Direct seeding, a rainfed area practice brought about by the early maturing varieties and the development of herbicides during the previous period, also continues to be increasingly popular due to less costs to farmers. The use of high quality seeds and the introduction of hybrid rice cultivars both from the public and private sectors are also pursued by government programs that continue to seek rice self-sufficiency levels enough to feed the increasing population of the country. Rice production practices is expected to continue to evolve to the changing challenges and needs of the times, when both the Filipino scientists and the rice farmer will come up with innovations that seek to pursue rice self-sufficiency and global competitiveness for the Filipino farmer. Direct seeding, mechanization and integrated nutrient and pest management will continue to be refined and practiced on wider scale. As new high yielding inbred and hybrid varieties that cater to new environments and conditions are developed and introduced, farmers will continue to adapt improved methods to plant rice and to maximize their benefits from producing it. Research institutions like PhilRice, the International Rice Research Institute and other research institutions will continue to lead in developing these innovations for more productive, profitable and sustainable rice production for the country.
    Keywords: paddy, rice production, farmers’ practices, traditional varieties, Green Revolution technologies, modern varieties, direct seeding, integrated nutrient and pest management, mechanization, postharvest
    JEL: Q16 Q10
    Date: 2010–01
  10. By: Shunli Yao (China Center for Economic Research)
    Abstract: China's early industrialization created distortions. This paper identifies major distortions in the Chinese economy in the pre-reform era and brings agricultural distortions into perspective. Comparison is made of the reform experience in Chinese industry and agriculture. It suggests that with limited arable land, it is difficult to align Chinese agricultural production fully with its comparative advantage without also reforming China's grain policy. Reform has substantially freed up agricultural production but border distortions serve as one of a few remaining effective measures to ensure the grain self-sufficiency target. Unlike agricultural protection in rich countries, China's grain self-sufficiency policy ahs much weaker institutional underpinnings and is susceptible to the influence of interest groups. The patterns of Chinese agricultural trade explain its ambiguous positions in WTO agriculture negotiations. In terms of grain sectoral adjustment, a possible comprehensive China-Australia FTA is consistent with the multilateral process, while the China-ASEAN FTA is not. There is no evidence that the China-ASEAN FTA helps with the WTO agriculture negotiations, particularly when rice is excluded from the deal; but China-Australia FTA could generate competitive liberalization in grain trade, and thus help with the global agricultural liberalization.
    Keywords: agricultural trade, WTO, Free Trade Agreement
    JEL: Q17 F13 F14
    Date: 2010–01
  11. By: Marife M. Ballesteros; F. Bresciani (Philippine Institute for Development Studies)
    Abstract: Using data from 3,120 farm household surveyed in 2000 and 2006 the paper tests for factors that affect the degree and extent of households’ participation in the rural land rental market. The survey period coincided with the full implementation of the Comprehensive Agrarian Reform Program (CARP) which imposes restriction on the conveyance and transfer (including rental) of all lands awarded under the program. Econometric results show that the rural land rental market is not functioning efficiently. Transaction costs in land leasing are significant resulting in high proportion of non-participants and incomplete adjustment towards desired cultivated area for households that participate in the market. Moreover, the poor and landless have limited access to the land rental market since participation in the market is not determined by agricultural ability but is strongly influenced by endowment of land and access to formal credit. While households with less land tend to rent-in more land, the demand for land increases for household owning land more than 5 hectares. On the other hand, the wealth bias of rural credit market is creating more barriers for the poor to access land. The poor has been able to participate in the rental market through share tenancy arrangements but dependence on informal credit markets constrains them to operate desired cultivated area. The twin effects of inefficient land rental market and credit market imperfections can offset labor advantages of family farms and cause farms to operate below optimal level. The need to achieve an efficient farm size is critical for rural development and should be viewed separately from land ownership. In particular, the land rental market plays a critical role in access to land by the poor and in households’ adjustment to an optimal farm size. It would thus be desirable for the government to improve the regulatory framework for the land rental market to operate efficiently.
    Keywords: land market, land tenure, agrarian reform, Philippines
    JEL: Q15 Q10
    Date: 2010–01
  12. By: Ponciano S. Intal Jr.; Marissa C. Garcia (Philippine Institute for Development Studies)
    Abstract: Rice has been a pivotal political commodity since the Commonwealth because of its importance as a staple food and calorie source for majority of the population, especially in the low-income groups, as well as a source of employment and income to a wide range of people that comprise the demand and supply chain. As a result, food security and price stability continue as twin priority objectives of the government regimes in the Philippines. Using a political economy perspective, this paper establishes the strong relationship between rice and politics and explains recent developments in the Philippine rice landscape. Results of the analysis show that the price of rice has been a significant determinant in election results since the 1950s, with the exception of 1998, where despite stable prices, the candidate from the incumbent administration failed to win the presidential elections. In addition, reliance by the Philippine government primarily on price instruments to achieve its rice objectives and to protect farmer and consumer interests has not resulted in any substantial improvements in rice production. In fact, the shift to rice protection since the 1980s has failed to stabilize domestic rice prices and has effectively penalized the poorer households. This has been traced largely to the failure of the National Food Authority to provide timely, accurate, and appropriate intervention in the country’s rice market. If the Philippines is to achieve sustained, stable rice supply at low prices and at the same time promote rice consumer and producer welfare, the adoption of a privatefocused, market-based regulatory regime without a rice trading parastatal (but with rice emergency reserves, not for price stabilization) remains as a long-term objective. In the meantime, a two-pronged transitional approach is suggested- 1) Setting up a Tax Expenditure Fund ceiling for all subsidies to government-controlled and -owned corporations (GOCCs); and 2) More aggressive support of productivity enhancing investments in the rice sector, e.g., irrigation and better varieties and improved farming practices through agricultural research, development, and extension (RD&E).
    Keywords: rice, politics, political economy, rice politics
    JEL: Q18 L66 Q10
    Date: 2010–01
  13. By: Gloria O. Pasadilla (Philippine Institute for Development Studies)
    Abstract: Non-tariff measures are everywhere vilified for preventing exports, especially of agriculture, from developing countries. Philippine exporters seem to be taking things in stride, however. The paper estimates the cost of certification regularly borne by a typical Philippine food exporter to be less than three percent of sales, a relatively inconsequential ratio. However, increased cost from NTMs can adversely affect the small-scale companies that lack resources to adapt their production processes to foreign standards. The paper also traces the Philippine export products affected by non-tariff measures imposed by the European Union. In all, NTMs of the EU affect a total of US$34 million of Philippine agriculture and fish exports to these markets, representing almost seven percent of agriculture exports to the twenty-five countries.
    Keywords: nontariff measures, market access, Philippine agricultural exports, European Union, sanitary and phytosanitary (SPS) measures
    JEL: Q13 Q17 Q18
    Date: 2010–01
  14. By: Leonardo A. Lanzona (Philippine Institute for Development Studies)
    Abstract: This paper aims to analyze how contracts are determined and modified given diverse agricultural settings and to examine the implications of these changes with respect to their efficiency, distribution and sustainability. The contract model presented here differs from previous contract models as the enforcement issues regarding contracts across various agro-climatic and output conditions are considered. Emphasis is placed on the effects of the shifts in production resulting from historical changes in both policy and production environments on the development contracts. Moreover, the consequences of the enforcement costs of contractual arrangements will be examined. Although much of the focus is on the rice economy, this paper attempts to provide an integrative description of the various agricultural contracts in different places in the Philippines. This will integrate the papers written on the contracts found in the fishing industry, the contract growing arrangements in Mindanao, and the contracts in swine, vegetable and mango production. Along with secondary data, the methodology for gathering data for this research includes rapid appraisal surveys, and field interviews.
    Keywords: Agricultural contracts, agriculture production, contract growing, contract model
    JEL: Q15 Q10 Q24
    Date: 2010–01
  15. By: U-Primo E. Rodriguez; Liborio S. Cabanilla (Philippine Institute for Development Studies)
    Abstract: The paper examines the effect of an RP-US FTA in the Philippine agricultural sector. Using an Applied General Equilibrium (AGE) Model, it analyzes the impact of the removal of tariffs on imports from the US on the various commodities in agriculture and food processing. The simulation results suggest that most of the commodities in these sectors experience gains in output and employment following the removal of Philippine tariffs on its imports from the U.S. It also shows that the benefits of agriculture and food processing from the FTA are larger with a comprehensive removal of tariffs.
    Keywords: Philippine agriculture production, consumption and employment, foreign and domestic markets, tariff change and removal, economic modelling
    JEL: Q17 Q13 Q10
    Date: 2010–01
  16. By: Bhim Adhikari
    Abstract: Market-based approaches to environmental management, such as payment for environmental services (PES), have attracted unprecedented attention during the past decade. PES policies, in particular, have emerged to realign private and social benefits such as internalizing ecological externalities and diversifying sources of conservation funding as well as making conservation an attractive land-use paradigm. In this paper, we review several case studies from Asia on payment for environmental services to understand how landowners decide to participate in PES schemes. [WP 134].
    Keywords: market-based, Aisa, ecological externalities, conservation, landowners, payment, environmental services, management, transaction costs, household, community, communications, PES, local inhabitant, livelihoods
    Date: 2010
  17. By: Aurelia George Mulgan (Australian Defence Force Academy, University of New South Wales)
    Abstract: Given former Prime Minister Koizumi’s reformist zeal, agriculture might have been expected to be high on his list of targets for so-called ‘structural reform’. However, an investigation of the record of his administration on agricultural policy reveals only modest achievements in terms of policy innovation for agriculture and farm trade. To some extent Japan’s farming sector has been impacted by processes of fiscal reform and deregulation as well as cutbacks in rural public works. Koizumi-initiated reforms to the policymaking process have also served to reduce the power of individual ruling Liberal Democratic Party politicians as representatives of special interests. However, the bureaucratic, party and interest group actors within the agricultural policy community retain their independent policymaking authority over the farm sector. Furthermore, the vertically segmented nature of Japan’s policymaking process will continue to limit the possibility of trade-offs between agriculture and business over issues such as Free Trade Agreements (FTAs).
    Keywords: Agriculture, Political Reform, Japan
    JEL: N5 O1 Q0
    Date: 2010–01
  18. By: Rosa Fe D. Hondrade (Philippine Institute for Development Studies)
    Abstract: The province of Davao del Sur is considered one of the major rice-producing provinces of Region XI. It has been regarded as Mindanao’s top rice-yielding province because of its municipality’s (Hagonoy) high yield performance. Hagonoy’s average rice yield of more than six tons per hectare has consistently been higher than the provincial average of a little more than five tons per hectare, both of which are higher than the regional average of more than four tons per hectare. In Hagonoy, some 1,436 farmers who are also mostly farmer-cultivators are actively engaged in rice farming over a total rice area of 2,046 hectares. The Office of the Municipal Agriculture (OMAG) handles the extension services related to agriculture and fisheries as well as cooperative development. Manning the office are- one (1) municipal agriculture officer (officer-in-charge) and eight (8)agricultural technologists to cover 21 barangays in the municipality. Understaffed, the office follows a simple organizational structure, generally flat with only two levels (head -> ATs). Each staff has been assigned to handle different programs and 2–3 barangays. To cope with its situation of delivering agricultural programs and services to all its 21 barangays with limited personnel, the OMAG adopts the following strategy- a) ATs handle one or more programs covering two or more barangays; b) strengthen linkages with local, provincial, regional and national offices that implement agriculture programs; c) prioritize its programs with banner programs given full support and providing assistance to linkage programs (public or private); d) strengthen its cooperatives and farmers’ organizations to lend support in technology dissemination, pest and technology performance monitoring, and community mobilization; and exploit the use of information technologies like cell phones. The study has shown that farmers have multiple sources of information within a given farming system. In addition to formal institutions like the national and regional agencies, the provincial and municipal agriculture services of the local government units, farmers seek out or exchange information and knowledge with input suppliers, traders and other private individuals who have stakes in rice production and marketing. Much of the information travels freely but some may also come with a fee. Such stakeholders (public or private) in rice may interact either to fulfill their needs or to pursue their interests. And as they interact with one another, information on prices, market opportunities, new technologies and practices as well as policy changes is also exchanged.
    Keywords: agriculture extension, rice-growing area, municipal agriculture services, knowledge management
    JEL: Q10 O31 O32
    Date: 2010–01
  19. By: Marife Ballesteros; Felino Cortez (Philippine Institute for Development Studies)
    Abstract: The objective of this paper is to present the land administration and management (LAM) issues on CARP and determine the necessary institutional reforms on LAM in view of CARP expiration in 2008. The paper discussed the adverse effects brought about by weak land policy and poor land administration on attaining the objectives of CARP. The poor land records, the lack of information sharing among government land agencies, the tedious land titling and registration process, the unclear land policies have resulted not only in prolonged implementation of the program but also flawed land redistribution and incomplete transfers of property rights. These outcomes evolved second-generation issues as “unperfected� titles are traded despite the restrictions imposed by the land reform law. The current LAM in the country showed that the system cannot handle the land transactions that evolve and continue to evolve from hundreds and thousands of transactions involving CARP awarded lands. There is a need to restore not only the confidence on Torrens system of titling on agriculture lands but also to restore the functioning of the rural land market. This is a key challenge on LAM since it would require reconciling information from key land agencies and including that of the Land Bank. It will also require legislative actions on land market regulations, land use policy and land administration in the country.
    Keywords: land reform, land ownership and tenure, land
    JEL: Q15 Q24
    Date: 2010–01
  20. By: Brishti Guha (Singapore Management University)
    Abstract: The purpose of this paper is to develop a simple model of an economy in which growth is driven by a combination of exogenous technical change in agriculture as well as by a rising world demand for labor-intensive manufactured exports. We explore the relative roles of agricultural innovation and rising export demand in a model with two traded industrial goods and a non-traded agricultural good, food. When the non-traded sector uses a specific factor, we show that technical change in agriculture may be the key to sustained factor accumulation in industry, in particular driving intersectoral labor migration. A key assumption is a less than unitary price elasticity of demand for food. Our results could form a crucial link in capturing the story of labor-abundant economies which experienced structural transformation and growth through labor-intensive manufactured exports, without prior technology breakthroughs in industry. They contribute to explaining the massive growth in factor accumulation which shows up in some growth accounting studies - they may also imply that some of the contribution of “technical progress� is mistakenly attributed solely to factor accumulation.
    Keywords: Structural change, agricultural productivity, labor migration, terms of trade
    JEL: O3 O4 F1
    Date: 2010–01
  21. By: Elias Giannakis (Agricultural Economics and Rural Development Department, Agricultural University of Athens)
    Abstract: This paper analyses the role of the extensive versus the intensive farming systems on rural development and specifically in a Greek rural area Trikala. The Generation of Regional Input Output Tables (GRIT) technique is applied for the estimation of the socio-economic impact of the farming systems through the estimation of an input-output (I/O) table. This is followed by an agriculture-centred multiplier analysis. The results suggest that intensive crops create stronger backward linkages from extensive ones. Almost all farming systems appear to have rather low Type 1 and Type 2 income and employment multipliers. Amongst them extensive crops seem to have the greatest due to high direct income and employment effects they create. Finally, the paper assesses the impact of the shift of land resources from intensive to extensive farming systems, due to the Mid-term Review of CAP, by exogenizing the output of the agricultural farming systems. The results of the above analysis indicate a reduction in the sectoral output of the region’s economy.
    Keywords: : intensive vs extensive farming systems; rural development; input-output analysis; CAP
    JEL: C67 O18 O13
    Date: 2010
  22. By: Hagos, Fitsum; Makombe, Godswill; Namara, Regassa E.; Awulachew, Seleshi Bekele
    Keywords: Irrigated farming / National income / Economic growth / Crops / Prices / Sensitivity analysis / Crop management / Irrigation schemes / Ethiopia
    Date: 2009
  23. By: Asep Suryahadi; Daniel Suryadarma; Sudarno Sumarto; Jack Molyneaux (SMERU Research Institute)
    Abstract: In a fast urbanizing Indonesia, the rural sector still plays an important role in the country’s economy. Although declining, the majority of the population still live and find employment in rural areas. However, rural areas lag behind urban areas in many aspects. As a result, around 80% of all the poor in the country are found in rural areas. Resolving this problem requires a clear and effective strategy to jump-start and sustain economic growth in rural areas. This study finds that the growth of the agricultural sector strongly induces the growth of the non-agricultural sector in rural areas. Although it has been fluctuating over time, it is estimated that, on average, one percent growth in the agricultural sector will induce 1.2% growth in the non-agricultural sector in rural areas. This finding vindicates the view that rising incomes in the agricultural sector stimulate demand for locally produced goods and services in rural areas, in particular those produced by the non-tradable sector. Formulated appropriately, a rural development strategy that develops the agricultural sector could provide a major impetus for achieving a fast growing and vibrant rural sector in Indonesia.
    Keywords: economic growth, rural development, Indonesia
    JEL: O47 O13 R11
    Date: 2010–01
  24. By: Liborio S. Cabanilla (Philippine Institute for Development Studies)
    Abstract: The paper describes the environment under which RP-US Agricultural trade currently operates. It also highlights key issues affecting current trade flows between the Philippines and the US, and provides background information vital for future bilateral agricultural negotiations with the U.S. Further to this, it shows that two major factors will determine the prospective net effects of a RP-US FTA on Philippine agriculture. First, the effects on exports will depend on the extent of US reduction of NTBs, particularly on mangoes, carrageenan, and canned tuna. Second, Philippine imports from the US will depend on its willingness to reconsider position, particularly on rice and corn. On this count, it must be noted that rice is an important wage good, and corn is a key livestock feed ingredient. Moreover, the advent of an FTA with the US should be a good reason to get Philippine agriculture better organized, in terms of policy and institutional support.
    Keywords: Agricultural Trade, US Agriculture support programs, Domestic Support Programs, Non-Tariff Barriers, liberalization, border controls, market access
    JEL: Q17 P45 O24
    Date: 2010–01
  25. By: Yoshihisa Godo (Meiji Gakuin University)
    Abstract: Japan’s small farming represents a puzzle. Currently nearly three-quarters of farmland is operated by farmers whose farm size is well under optimal size. Being too small is the main reason for the high cost of Japanese farm products, so why does inefficient, small farming persist and market mechanisms not function? This paper explains the political dynamics whereby traditional small farming communities are powerful voting groups that prefer to maintain their political power rather than increase farm income. By exerting political pressure upon the authorities, farmers can obtain large returns through the manipulation of farmland-use regulations, even though such manipulation causes social harm by preventing efficient land use. Farmland problems are linked to the social problem of Japan’s underdeveloped participatory democracy, which is a problem in East Asian countries as well. These issues are not generally discussed by the Japanese mass media and academics. This paper also includes the author’s policy suggestions for new farmland-use regulations and taxation.
    Date: 2010–01
  26. By: Widjajanti Isdijoso Suharyo; Sudarno Sumarto; Nina Toyamah; Adri Poesoro; Bambang Sulaksono; Syaikhu Usman; Vita Febriany; Harry D.J. Foenay; Rowi Kaka Mone; Thersia Ratu Nubi; Yakomina W. Nguru (SMERU Research Institute)
    Abstract: Efforts to improve the business climate in East Nusa Tenggara (NTT) Province are still facing significant obstacles. Moreover, a healthy business climate is needed to create conditions conducive to hastening development, increasing the employment field, and adding to local revenue. In June-August 2006, SMERU conducted a study of the business climate in NTT, concentrating on four districts and one city in West Timor. The study aims to identify various government policies at the central, provincial, and district/city level, which are directly and indirectly related to market structure, the flow of goods, fee structures, and prices received by producers and traders of agricultural products. The study also examines the impact of various agricultural product charges on provincial and district/city local revenue. The information and data was gathered from various respondents, including producers (farmers, livestock producers, fishermen, and home industry operators); traders (intermediate traders to exporters); as well as relevant government offices and agencies. The main finding of the research is that district/city local governments in West Timor are still attempting to increase local revenue by imposing various charges on the trade of agricultural commodities, although the total charges are currently lower than the period prior to 1997. Forestry products and large livestock (mainly cattle) attract the most charges. The study made several other findings. Firstly, in an effort to avoid a central government regulation that limits the total charges, the NTT local government has endeavored to reinvent charges as third party contributions or administration fees. Secondly, although the impact of official charges on the local budget (APBD) is relatively small, it can trigger the emergence of various unofficial charges, or bribes. Thirdly, agricultural producers generally have small-scale enterprises and weak bargaining powers as selling prices are still determined by several big inter-island traders�thus forming a monopsony environment.
    Keywords: business climate, charges, commodities, agriculture, local government, permits
    JEL: O13 Q13 R58
    Date: 2010–01
  27. By: Izumi Shirai (Graduate School of Economics, Osaka University)
    Abstract: This article analyzed the business marketing of the Agricultural Co-operatives Association established in Takedate Village in the Tsugaru district of Aomori Prefecture in 1907. In the early stages of the Meiji period, this area was considered as backward in terms of commodity production and circulation. However, the Agricultural Co-operatives Association has been highly evaluated for its business marketing across the nation ever since the mid-1910s, and has built a brand name for itself, We obtained the followings results. (1) By means of production inspection before packaging, the association made an effort toward not only the production of high-quality apples but also their trusted shipment in accordance with the brand name and standards established for itself. All these were extremely advanced efforts in agricultural commodity transactions. (2) However, until the early 1910s, the business sales of the association encountered certain problems. One problem was that the association partners had illegally sold apples to merchants and therefore, could not gather enough apples to sell. Another problem was that the specification wholesalers in the great city did not make all their payments smoothly. While being such status, the association thought much of the trust and the autonomy at the partners and the wholesales. It supported without laying down compulsion and a penalty regulation. (3) The problems mentioned in the above point were solved after the association received special awarding in 1916. The association became flagrant nationwide and succeeded in establishing a brand name image. The partners recognized that apples sold on behalf of the association should be done so at favorable prices. As the associationfs apples became famous in the markets of consuming regions, wholesalers came to recognize special wholesale contracts with this association as an honor. Consequently, the association grew to be an economic organization that took the initiative in product sales to wholesalers even in important cities such as Tokyo.
    Keywords: Japanese Economic History, Agricultural Co-operatives Association, , Institution, Market
    JEL: N55 N75 N85
    Date: 2009–09
  28. By: John C. de Leon (Philippine Institute for Development Studies)
    Abstract: This paper introduces rice to the reader and analyzes the changes it has gone through these past 100 years in the shaping hands of varietal improvement science. Here, the richness of the crop as a genetic material and resource is revealed. Landrace rice, pureline selection rice, crossbred rice, semidwarf rice, hybrid rice, new plant type rice, designer rice - from the traditional to modern to futuristic - rice becomes all of these while traversing time in the Philippines. There is rice for the lowlands, uplands, the cool elevated; the irrigated and rainfed; the saline prone, drought prone, the flood prone - each kind serving as a wonderful display of dexterity from a tiny seed. Rice for full season farming and rice for double or relay cropping also exist. Of course, there must be rice for daily consumption and rice for important occasions. There is non-sticky rice or the glutinous opposite; well milled or brown rice; red rice; aromatic rice; micronutrient dense rice; golden rice; the generic fancy or specialty rices; even rice with healing wonders or medicinal properties. Harnessed by purposeful R&D, rice ably provides for the multiplicity of our needs. And though very much transformed already rice remains culturefriendly, like the science that does not tire molding it. Viewed in these sense, rice becomes very precious and unabandonable to many.
    Keywords: Rice, Filipinos, rice as essential crop, rice as essential food, rice culture, cultivated species, varieties, varietal improvement, yield, rice sufficiency, opportunities besides high yield
    JEL: Q16 I31 Q18
    Date: 2010–01
  29. By: Miguel Rocha de Sousa (Department of Economics, University of Évora; NICPRI-UE)
    Abstract: We define in section 1 our notion of land reform, on section 2, the most important social and political movements of land reform in Latin America are presented. On section 3 we use a theoretical model in the context of economic growth with human capital learning-by-doing to evaluate land reforms. Section 4, discusses the results. Section 5 presents some economic efficiency estimates for the ?Cédula? project of 2000 in NE Brazil - a market led land bill project, sponsored by the World Bank (WB) and the Ministry of Agricultural Development (MDA). Finally, section 6 concludes, and section 7 presents the references.
    Keywords: Brazil, ?Cédula?, human capital, Land Reform, Latin America, Learning by doing, ?MST - Movimento dos Sem Terra?.
    JEL: Q15
    Date: 2009
  30. By: Filomeno V. Aguilar, Jr. (Philippine Institute for Development Studies)
    Abstract: This paper deals with a basic question- How central is rice to the Filipino, what are its implications for understanding the way we approach and regard rice, and what do they indicate about Filipino culture? To answer this question, the paper focuses on the structural position of most Filipinos vis-Ã -vis rice. The paper argues that, at present, most Filipinos relate to rice as consumers rather than as producers of rice. From that perspective, the paper explores certain cultural practices that may shed light on the role of rice in Filipino culture. In particular, the paper traces the transformation of rice from a prestige and mainly elite food to the staple food by the end of the nineteenth century. This was accompanied by a change in perception of the rice plant that removed the magical elements. Rice today is primarily a consumer product the consumption of which reflects the stratification of Filipino society, as supported by quantitative data on contemporary trends in rice consumption. The paper concludes with reflections on the diminished centrality of rice in Philippine culture as a consumer commodity. The commoditization of rice is linked to urbanization, industrialization, and the Green Revolution.
    Keywords: rice spirits, elite food, staple, rice consumption, commensality, commodity
    JEL: L66 E21
    Date: 2010–01
  31. By: António Cipriano Pinheiro (Department of Economics, University of Évora)
    Abstract: The main objective of this paper is to present facts and arguments trying to prove that unfair prices are the most important cause for the dilapidation of human and natural resources. In many poor countries farmers sell their products at prices below their real cost. In these countries, most often, family labour and equipment depreciation are not accounted as real costs. Although the huge technical progress occurred in the last fifty years, or because of it, many thousands of farmers in undeveloped countries went bankruptcy and many millions of people are starving. The expected increase in world population will demand for levels of production much higher than those that are been produced. So, if we want to feed the world in a sustainable way, maintaining the production potential of human and natural resources, a new set of trade and rural development policies have to be implemented across the world, based on regional common markets. To promote these policies, regional organizations (that include several countries) and a new international trade organization must be created.
    Keywords: fair prices, trade policies, resources dilapidation, regional common markets, family farms, agricultural subsidies
    JEL: F02 F13 O13 O33 Q13 Q17
    Date: 2009
  32. By: Marife Ballesteros; Alma dela Cruz (Philippine Institute for Development Studies)
    Abstract: This paper examines the effect of land reform and land transfer actions of farmer beneficiaries on land ownership concentration. A case study of two rice-growing villages was used to track down ownership changes over a period of time. Land reform has succeeded in the break up of huge estates in rice-growing villages but has not effectively improved land ownership concentration due to evasions tactics of landlords who have retained a significant portion of lands to the family through land schemes that are apparently legitimate under the land reform laws. Land transfer actions of farmer beneficiaries have not necessarily worsen the current land ownership concentration but in the absence of progressive land tax, these actions can lead to widening land concentration.
    Keywords: land reform, land ownership concentration, land ownership consolidation
    JEL: Q15 Q10
    Date: 2010–01
  33. By: Saleth, Rathinasamy Maria; Inocencio, Arlene; Noble, Andrew D.; Ruaysoongnern, S. (International Water Management Institute; International Water Management Institute; International Water Management Institute)
    Keywords: Soil improvement / Impact assessment / Research projects / Soil fertility / Sandy soils / Water holding capacity / Clay soils / Soil water relations / Soil management / Farming systems / Crop yield / Vegetable crops / Rice / Sorghum / Models / Statistical methods / Cost benefit analysis / Economic analysis / Economic aspects / Thailand
    Date: 2009
  34. By: Eriyagama, Nishadi; Smakhtin, Vladimir; Gamage, Nilantha (International Water Management Institute; International Water Management Institute; International Water Management Institute)
    Keywords: Drought / Impact assessment / Indicators / Hydrology / Mapping / Climate change / River basins / Dams / Water scarcity / Disasters / Risks / Precipitation / Runoff / Soil degradation
    Date: 2009
  35. By: d’Artis Kancs (European Commission ‐ Joint Research Centre (IPTS); Catholic University of Leuven (LICOS); Economics and Econometrics Research Institute (EERI)); Pavel Ciaian (European Commission ‐ Joint Research Centre (IPTS); Catholic University of Leuven (LICOS); Economics and Econometrics Research Institute (EERI))
    Abstract: In this paper we study the determinants of the factor content of the CEE agricultural trade. Examining empirically three hypothesis, which relate cross- country di§erences in technology, relative factor abundance and transaction costs and market imperfections to the factor content of trade, we find that the first two hypotheses are confirmed by the ma jority of the developed EU countries, but rejected by roughly one half of the CEE transition country pairs. Second, we find that when accounting for transaction costs of farm (re)organisation, both hypotheses are confirmed by the ma jority of the CEE country pairs. These findings provide empirical evidence of market imper- fections, and particularly, of transaction costs of farm (re)organisation in the CEE.
    Keywords: Factor content, bilateral trade, relative factor abundance, technological diferences, agriculture, transaction costs
    JEL: F12 F14 D23 Q12 Q17
    Date: 2009
  36. By: Francesco Aiello; Federica Demaria (Dipartimento di Economia e Statistica, Università della Calabria)
    Abstract: The EU grants preferential access to its imports from developing countries under several trade agreements. The widest arrangement, in terms of country and product coverage, is the Generalised System of Preferences (GSP) through which, since 1971, virtually all developing countries have received preferential treatment when exporting to world markets. This paper evaluates the impact of GSP in enhancing developing countries’ exports to EU markets. It is based on the estimation of a gravity model for a sample of 769 products exported from 169 countries to EU over the period 2001-2004. While, from an econometric point of view, the estimation methods take into account unobservable country heterogeneity as well as the potential selection bias which zero-trade values pose, the empirical setting considers an explicit measure of trade preferences, the margin of preferences. The analysis offers new empirical evidence that the impact of GSP on developing countries’ agricultural exports to the EU is positive.
    Keywords: Trade Preferences, Developing Countries, Agricultural Trade
    JEL: H50 R11 R58 C23
    Date: 2010–02
  37. By: Gloria O. Pasadilla (Philippine Institute for Development Studies)
    Abstract: The paper analyzes how various preferential trading arrangements deal with agriculture liberalization and examines a few case studies highlighting the provisions on agriculture. It assesses the effect of preferential trade agreements on agriculture trade flows in the case of ASEAN. It finds that while the tariff reduction on all goods, including agriculture, in ASEAN provides a marked advantage from the MFN tariff rates, intra-ASEAN agriculture trade have not been all that significant. Most of the growth in the intra-ASEAN trade had come from trade in industry; and if total agriculture trade had expanded, much of it was due to trade outside the region. The paper argues that AFTA, by original design, had not really been made to boost intra-regional agriculture trade, but rather to facilitate the inter-industry trade arising out of the vertically integrated network of manufacturing transnational corporations.
    Keywords: Regional trade liberalization, preferential trading arrangements, FTA, tariffs, relative tariff ratios, ASEAN, AFTA, agriculture
    JEL: F13 F14 Q17
    Date: 2010–01
  38. By: Katsushi S Imai
    Abstract: This paper studies the impact of taxation on poverty and ex ante vulnerability of households in rural China based on national household survey data in 1988, 1995 and 2002. [CPRC working paper 156].
    Keywords: poverty, vulnerability, taxation, rural China, inequality, household, survey data,
    Date: 2010
  39. By: Amit K. Bhandari; Almas Heshmati (IISWBM, Management House, College Square West, Kolkata-700 073, India)
    Abstract: Nature based tourism is the fastest growing tourism in many parts of the world. The attitude towards conservation of nature is measured by individuals¡¯willingness to pay. This study has made an attempt to investigate the determinants of tourists¡¯willingness to pay (WTP) for biodiversity conservation. The determinants include a combination of socio-economic and site-specific characteristics of tourists. The study was conducted in Sikkim, which is India¡¯s prime nature based tourism destination. Results show that willingness to pay is determined by the level of education and income of tourists. Among site-specific characteristics length of stay and number of spots are the significant determinants of willingness to pay. This empirical research is a valuable input to identify market segment among tourists, which might help to generate more revenue for biodiversity conservation in Sikkim.
    Keywords: Willingness to pay, conservation, tourism, logit model, tobit model
    JEL: Q26 Q57 L83 C25
    Date: 2009–12
  40. By: Giuseppe Attanasi; Aldo Montesano
    Date: 2010–01
  41. By: Daniel Suryadarma; Adri Poesoro; Sri Budiyati; Akhmadi; Meuthia Rosfadhila (SMERU Research Institute)
    Abstract: This study measures the impact of supermarkets on traditional markets in urban centers in Indonesia quantitatively using difference-in-difference and econometric methods as well as qualitatively using in-depth interviews. The quantitative methods find no statistically significant impact on earnings and profit but a statistically significant impact of supermarkets on the number of employees in traditional markets. The qualitative findings suggest that the decline in traditional markets is mostly caused by internal problems from which supermarkets benefit. Therefore, ensuring the sustainability of traditional markets would require an overhaul of the traditional market management system, enabling them to compete with and survive alongside supermarkets.
    Keywords: impact evaluation, traditional market, supermarket, urban, Indonesia
    JEL: L81
    Date: 2010–01
  42. By: Eathington, Liesl; Swenson, David A.
    Abstract: This report tracks recent state-level employment changes in a set of 35 industries that research suggests have been materially affected by advances in information technologies. THe industries are grouped into two categories: those producing IT goods and services, and those consuming IT goods and services. The study looks for recent evidence that these IT-related industries are changing how they make location decisions, with a special emphasis on the prospects for rural areas in attracting these types of firms.
    JEL: R0
    Date: 2010–01–21

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.