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The impact of agricultural policy distortions on the productivity gap: Evidence from rice production

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  • Rakotoarisoa, Manitra A.
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    Abstract

    This article explores how production and trade policy distortions affected rice productivity in 33 rice-producing countries. A rice-productivity index is constructed, and a model linking the productivity gap with policy distortions is presented. After controlling for the differences in infrastructure, access to inputs and equipment, openness, and human capital, this article shows that high levels of rice subsidies and protection in rich countries combined with taxation of rice farming in poor countries widened the gap in rice productivity between rich and poor rice countries.

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    File URL: http://www.sciencedirect.com/science/article/B6VCB-51CRWJ7-1/2/dbf20bbabbb9ed698fc20aec705fe940
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    Bibliographic Info

    Article provided by Elsevier in its journal Food Policy.

    Volume (Year): 36 (2011)
    Issue (Month): 2 (April)
    Pages: 147-157

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    Handle: RePEc:eee:jfpoli:v:36:y:2011:i:2:p:147-157

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    Web page: http://www.elsevier.com/locate/foodpol

    Related research

    Keywords: Agricultural policies Trade distortions Rice productivity;

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    1. Fulginiti, Lilyan E & Perrin, Richard K, 1993. "Prices and Productivity in Agriculture," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 471-82, August.
    2. Ransom, J. K. & Paudyal, K. & Adhikari, K., 2003. "Adoption of improved maize varieties in the hills of Nepal," Agricultural Economics, Blackwell, vol. 29(3), pages 299-305, December.
    3. Robert J. Barro, 1995. "Inflation and Economic Growth," NBER Working Papers 5326, National Bureau of Economic Research, Inc.
    4. Evenson, Robert E. & Pray, Carl E. & Rosegrant, Mark W., 1999. "Agricultural research and productivity growth in India:," Research reports 109, International Food Policy Research Institute (IFPRI).
    5. Stephen Tokarick, 2008. "Dispelling Some Misconceptions about Agricultural Trade Liberalization," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 199-216, Winter.
    6. Rodolfo Cermeno & G. S. Maddala & Michael Trueblood, 2003. "Modeling Technology as a Dynamic Error Components Process: The Case of the Inter-country Agricultural Production Function," Econometric Reviews, Taylor & Francis Journals, vol. 22(3), pages 289-306.
    7. Carter, Colin A. & Chen, Jing & Chu, Baojin, 1999. "Agricultural Productivity Growth In China: Farm Level Versus National Measurement," Working Papers 11954, University of California, Davis, Department of Agricultural and Resource Economics.
    8. Adriana Schor, 2004. "Heterogeneous Productivity Response to Tariff Reduction: Evidence from Brazilian Manufacturing Firms," NBER Working Papers 10544, National Bureau of Economic Research, Inc.
    9. Schor, Adriana, 2004. "Heterogeneous productivity response to tariff reduction. Evidence from Brazilian manufacturing firms," Journal of Development Economics, Elsevier, vol. 75(2), pages 373-396, December.
    10. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-98, March.
    11. Gail L. Cramer & James M. Hansen & Eric J. Wailes, 1999. "Impact of Rice Tariffication on Japan and the World Rice Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1149-1156.
    12. Weiss, Allen M, 1994. "The Effects of Expectations on Technology Adoption: Some Empirical Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 341-60, December.
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