IDEAS home Printed from https://ideas.repec.org/a/ags/uersja/138831.html
   My bibliography  Save this article

Terms of Trade and Factor Commitments in Agriculture

Author

Listed:
  • Fohlin, Caroline
  • Robinson, Sherman
  • Schluter, Gerald E.

Abstract

US agricultural economic growth in this century has been characterized by a slow rise in the demand for food and faster growth in farm output as against nonfarm productivity. In such an environment, one expects the size of the farm sector to decline as a share of the rest of the economy. What is not so clear is the effectiveness of the price system in signaling the appropriate resource adjustments or of the resource market in responding to available signals. We examine four terms-of-trade measures conceptually and, since 1929, empirically. We find that even distortions from farm programs have not offset the long-term trend of declining terms of trade. Labor and capital markets respond, albeit imperfectly and slowly.

Suggested Citation

  • Fohlin, Caroline & Robinson, Sherman & Schluter, Gerald E., 1989. "Terms of Trade and Factor Commitments in Agriculture," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 41(4), pages 1-6.
    • Handle: RePEc:ags:uersja:138831
    DOI: 10.22004/ag.econ.138831
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/138831/files/3Fohlin_41_4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.138831?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kym Anderson, 1987. "On Why Agriculture Declines with Economic Growth," Agricultural Economics, International Association of Agricultural Economists, vol. 1(3), pages 195-207, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hanson, Kenneth & Robinson, Sherman & Tokarick, Stephen, 1990. "U.S. Adjustment in the 1990's: A CGE Analysis of Alternative Trade Strategies," Staff Reports 278325, United States Department of Agriculture, Economic Research Service.
    2. Dote, Grace, 1991. "Economic Research Of Interest To Agriculture, 1988-1990," Economic Research of Interest to Agriculture 7326, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Hanson, Kenneth & Robinson, Sherman & Tokarick, Stephen, 1989. "United States Adjustment in the 1990s: A CGE Anaylsis of Alternative Trade Strategies," CUDARE Working Papers 198496, University of California, Berkeley, Department of Agricultural and Resource Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlos Gaviria, 2011. "The Post-war International Food Order: The Case of Agriculture in Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 74, pages 119-150.
    2. Offutt, Susan & Shoemaker, Robbin, 1989. "Distribution of Domestic Policy Benefits and the Willingness to Support Trade Liberalization," 1989 Occasional Paper Series No. 5 197669, International Association of Agricultural Economists.
    3. Bailey, A. & Williams, N. & Palmer, M. & Geering, R., 2000. "The farmer as service provider: the demand for agricultural commodities and equine services," Agricultural Systems, Elsevier, vol. 66(3), pages 191-204, December.
    4. Punyasavatsut, Chaiyuth & Coxhead, Ian A., 2002. "On The Decline Of Agriculture In Developing Countries: A Reinterpretation Of The Evidence," Staff Papers 12659, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    5. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889, December.
    6. Anderson, Kym, 1995. "Impacts of New Multilateral and Regional Integration Agreements on Agricultural Competitiveness of Advanced Economies," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183378, International Association of Agricultural Economists.
    7. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 168-194.
    8. SJ, Balaji & Pal, Suresh, 2021. "Agricultural Productivity, Pay-Gap, and Non-Farm Development: Contribution to Structural Transformation in India," 2021 Conference, August 17-31, 2021, Virtual 315213, International Association of Agricultural Economists.
    9. Anderson, Kym, 1990. "China's Economic Growth, Changing Comparative Advantages and Agricultural Trade," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 58(01), pages 1-20, April.
    10. Glenn C. W. Ames, 1990. "US-EC agricultural policies and GATT negotiations," Agribusiness, John Wiley & Sons, Ltd., vol. 6(4), pages 283-295.
    11. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, August.
    12. Johanes Agbahey & Khalid Siddig & Harald Grethe & Jonas Luckmann, 2022. "Trade policy in a sovereign Palestinian State: What are the options in a final settlement?," The World Economy, Wiley Blackwell, vol. 45(10), pages 3269-3293, October.
    13. Kym Anderson, 2018. "Mining’s impact on the competitiveness of other sectors in a resource-rich economy: Australia since the 1840s," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 141-151, May.
    14. Ian Hodge & Jessica Dunn & Sarah Monk & Maureen Fitzgerald, 2002. "Barriers to Participation in Residual Rural Labour Markets," Work, Employment & Society, British Sociological Association, vol. 16(3), pages 457-476, September.
    15. Esposti, Roberto, 2014. "On why and how agriculture declines," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 73-88.
    16. André Alves & Filipe Marcelino & Eduardo Gomes & Jorge Rocha & Mário Caetano, 2022. "Spatiotemporal Land-Use Dynamics in Continental Portugal 1995–2018," Sustainability, MDPI, vol. 14(23), pages 1-29, November.
    17. Anderson, Kym, 2016. "Sectoral Trends and Shocks in Australia’s Economic Growth," CEPR Discussion Papers 11598, C.E.P.R. Discussion Papers.
    18. Enjiang Cheng & Christopher Findlay & Andrew Watson, 1997. "Internal Reform, Budget Issues and the Internationalisation of the Grain Market in China," Chinese Economies Research Centre (CERC) Working Papers 1997-02, University of Adelaide, Chinese Economies Research Centre.
    19. Baum, S. & Cook, P. & Stange, H. & Weingarten, P., 2007. "Agricultural employment trends in an enlarged European Union: does the CAP reform / introduction matter?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    20. Schweikhardt, David B., 2000. "Reconsidering The Farm Problem Under An Industrializing Agricultural Sector," Staff Paper Series 11506, Michigan State University, Department of Agricultural, Food, and Resource Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersja:138831. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.