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Agricultural policy and the WTO Agreement: The Philippine Case

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  • David, Cristina C.
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    Abstract

    The growth of the Philippine economy has been erratic since 1980’s. It is only until recently that it shows signs of catching up with the progress of its fellow Asian countries. Whether its recovery is sustainable at the aggregate level remains largely a question. Agriculture sector, however, is still bereft of such development exhibiting not only a fluctuating but also a relatively dismal performance. Comparison of Asian countries indicates that the Philippines have the most severe and most prolonged decline in the gross value added in agricultural exports. This is suspected to be due to the differences in the policy and institutional structures governing the sector. This paper analyzes the changing nature of price intervention and public expenditure policies affecting agriculture, the implications of WTO agricultural agreement on these policies and the factors in the political economy that help shape the nature of agricultural policies. Analysis shows price distortion and protection result to economy-wide inefficiencies through high consumer prices. The non-discriminating choice of policy instruments translates to inefficiency as well.

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    File URL: http://serp-p.pids.gov.ph/serp-p/download.php?d=271&s=3
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    Bibliographic Info

    Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 1997-13.

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    Length: 41
    Date of creation: 1997
    Date of revision:
    Handle: RePEc:phd:dpaper:dp_1997-13

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    Related research

    Keywords: World Trade Organization; price intervention;

    References

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    1. Bautista, Romeo M., 1987. "Production incentives in Philippine agriculture: effects of trade and exchange rate policies," Research reports 59, International Food Policy Research Institute (IFPRI).
    2. Roumasset, James A. & Clarete, Ramon L., 1983. "An Analysis of Economic Policies Affecting the Philippine Coconut Industry," Working Papers WP 1983-08, Philippine Institute for Development Studies.
    3. Schiff, Maurice & Valdes, Alberto, 1998. "Agriculture and the macroeconomy," Policy Research Working Paper Series 1967, The World Bank.
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    Cited by:
    1. Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines," MTID discussion papers 86, International Food Policy Research Institute (IFPRI).
    2. Caesar B. Cororaton & John Cockburn & Erwin Corong, 2005. "Doha Scenarios, Trade Reforms, and Poverty inthe Philippines: a CGE Analysis," Working Papers MPIA 2005-03, PEP-MPIA.
    3. Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines : a computable general equilibrium analysis," Policy Research Working Paper Series 3738, The World Bank.
    4. World Bank, 2000. "Philippines - Growth with Equity : The Remaining Agenda - A World Bank Social and Structural Review," World Bank Other Operational Studies 15142, The World Bank.

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