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The Impact of Industrial Protection on Agriculture: A General Equilibrium Analysis for Peninsular Malaysia

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  • Wiebelt, Manfred

Abstract

This paper quantitatively investigates the effects of trade policy on agriculture in Peninsular Malaysia using a multisectoral, general equilibrium model. In general, the results bear out the expectation that industrial protection distorts incentives favoring manufacturing and nontradable activities over agriculture as a whole. Whereas this result is familiar from other recent studies, the general-equilibrium approach allows many additional disaggregate findings. Industrial protection in Malaysia taxes, e.g., not all agricultural sectors. The rubber sector is discriminated by tariff protection for manufacturing, but the oil palm sector is favored due to string forward linkages to the protected industries. Copyright 1991 by Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 18 (1991)
Issue (Month): 1 ()
Pages: 61-84

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Handle: RePEc:oup:erevae:v:18:y:1991:i:1:p:61-84

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Cited by:
  1. Wiebelt, Manfred & Herrmann, Roland & Schenck, Patricia & Thiele, Rainer, 1992. "Discrimination against agriculture in developing countries?," Open Access Publications from Kiel Institute for the World Economy 458, Kiel Institute for the World Economy (IfW).
  2. Wiebelt, Manfred, 1992. "Boomende Exportmärkte und landwirtschaftliche Entwicklung: Eine allgemeine Gleichgewichtsanalyse für Malaysia," Open Access Publications from Kiel Institute for the World Economy 2021, Kiel Institute for the World Economy (IfW).
  3. Amelung, Torsten & Wiebelt, Manfred, 1991. "Deforestation in the tropics: a framework for economic analysis," Kiel Working Papers 488, Kiel Institute for the World Economy.

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