Rice policy, trade, and exchange rate changes in Indonesia: A general equilibrium analysis
AbstractThis paper presents an agriculture-focused computable general equilibrium model that can be used to analyze the economy-wide impacts of changes in technology, market structure, and the foreign exchange rate on resource allocation, production, and trade in Indonesia. The model includes a specification of the rice market and the government price-support, stocking, and trade policies for rice. Using a mixed complementarity approach, the model incorporates inequalities and changes in policy regime as prices and/or stocks move within specified bands. The model is used to examine the impact on the Indonesian economy of changes in rice yield and exchange rates given different assumptions about the operations of BULOG (National Logistic Agency). An important result is that there is inefficient allocation of resources within agriculture and the rest of the economy if BULOG operates to maintain the rice price when there are significant increases in rice productivity or changes in the exchange rate. With increased productivity in rice, the price support scheme retains resources in rice production that would be better used in other, high value, agriculture. With devaluation, maintaining a low rice price discriminates against rice producers and hence slows the process of structural adjustment. In addition, the price support program is costly and strains the government accounts, even if the administrative costs of operating the program are ignored.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Asian Economics.
Volume (Year): 9 (1998)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/asieco
Other versions of this item:
- Robinson, Sherman & El-Said, Moataz & San, Nu Nu, 1998. "Rice policy, trade, and exchange rate changes in Indonesia: a general equilibrium analysis," TMD discussion papers 27, International Food Policy Research Institute (IFPRI).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robinson, Sherman & El-Said, Moataz & San, Nu Nu & Suryana, Achmad & Swastika, Dewa & Bahri, Sjaiful, 1997. "Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis," TMD discussion papers 19, International Food Policy Research Institute (IFPRI).
- Robinson, Sherman & Roland-Holst, David W., 1988. "Macroeconomic structure and computable general equilibrium models," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 353-375.
- Timmer, C. Peter, 1989. "Food price policy : The rationale for government intervention," Food Policy, Elsevier, vol. 14(1), pages 17-27, February.
- Henning Tarp Jensen & Sherman Robinson & Finn Tarp, 2004.
"General Equilibrium Measures of Agricultural Policy Bias in Fifteen Developing Countries,"
04-25, University of Copenhagen. Department of Economics.
- Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 2002. "General equilibrium measures of agricultural policy bias in fifteen developing countries," TMD discussion papers 105, International Food Policy Research Institute (IFPRI).
- San, Nu Nu & Rosegrant, Mark W. & Perez, Nicostrato D., 1998. "Indonesian agriculture in transition: Projections of alternative futures," Journal of Asian Economics, Elsevier, vol. 9(3), pages 445-465.
- Arndt, Channing & Dorosh, Paul A. & Fontana, Marzia & Zohir, Sajjad & El-Said, Moataz & Lungren, Christen, 2002. "Opportunities and challenges in agriculture and garments," TMD discussion papers 107, International Food Policy Research Institute (IFPRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.