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By IFPRI

By means of interpreting and evaluating agricultural rules in India, Indonesia, China, and Vietnam, this examine is helping fill an important hole in improvement study. The file offers an review of conceptual and dimension matters relating to the consequences of alternate and domestic-support regulations and coverage reforms at the incentives of agricultural manufacturers and provides empirical estimates of the measure of safeguard or disprotection within the 4 nations. From India's countercyclical coverage results and Indonesia's excessive degrees of agricultural defense, to the fashion towards modest aid of agriculture in China and Vietnam, the report's effects exhibit either how adjustments in agricultural coverage can increase farmers' incentives as monetary development happens and the way tough it's to reform entrenched coverage interventions. via such findings, the record contributes to coverage discussions on growing propoor rules with regards to agricultural aid and exchange, either on the household point and in foreign negotiations.

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Additional resources for Agricultural Producer Support Estimates for Developing Countries: Measurement Issues and Evidence from India, Indonesia, China, and Vietnam

Example text

13 Exports of major agricultural commodities by Vietnam, 2003 Rank in Vietnam exports 1 2 3 4 5 6 7 8 9 10 Rank in world exports Producta Quantity (metric tons) Value (thousands of $) Unit value ($) 3 3 4 2 1 8 2 6 3 — Milled paddy rice Coffee, green Rubber, natural, dry Cashew nuts, shelled Pepper Tea Cassava, dried Groundnuts, shelled Fruit, fresh nes Food, prepared nes 3,813,000 749,200 345,000 83,900 74,100 59,800 632,006 82,700 96,359 56,579 727,000 330,000 265,000 260,000 127,680 70,000 52,795 52,000 45,781 41,873 191 440 768 3,099 1,723 1,171 84 629 475 740 Source: FAO (2006).

Includes support provided through trade policies such as tariffs and export subsidies. Includes product-specific and non-product-specific support regardless of level. Defined as the gap between the official administered price and the fixed external reference price multiplied by eligible production. Defined as transfers from consumers and taxpayers to agricultural producers arising from policies that create a gap between the domestic market price and the equivalent border price. Uses current observed domestic prices and observed external prices adjusted to the farmgate level multiplied by the level of production.

Several studies have demonstrated that a large share of the transfers from taxpayers and consumers to agricultural producers goes to other parts of the production chain or to fixed factors of production such as land. Dewbre, Antón, and Thompson (2001) find that subsidies on purchased inputs, on which many developing countries rely to transfer support to producers, are the least efficient in providing income to farmers. Burfisher and Hopkins (2003) calculate that farm operators may retain as little as 40 per- and Meester (2003) also show that, if a quota system is in place, the PSE methodology may underestimate its effects on producers.

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