Malaysian Rice Trade And Government Interventions
AbstractMalaysia’s rice sector is highly protected, with the protection justified largely by arguments for food security. The government intervenes in the rice market by providing subsidies to farmers and consumers as well as imposing high import duties. Furthermore, the rice trade is controlled through a sole importer. In this paper, the welfare effects of eliminating the major government interventions in Malaysia’s rice sector are evaluated. A modified spatial price equilibrium model that incorporates a sole importer with a fixed domestic price has been developed to measure the welfare impacts of the market distortions. Four scenarios were developed: (1) removal of the sole importer but continuation of the subsidies and existing tariffs; (2) removal of the subsidies but with the existence of the sole importer; (3) imposition of tariff and (4) free trade. Large net welfare gains and a significant reduction in government expenditures are likely if all forms of government interventions were to be eliminated and a free market allowed.
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.
Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia with number 100726.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
Food Consumption/Nutrition/Food Safety;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.