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The Political Economy Of Agricultural Pricing Policy: Malaysia

Author

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  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)

  • ANDREW LAI

Abstract

Since 1960 Malaysia has become a highly efficient producer of natural rubber, thanks to its agricultural and trade policies. The primary purpose of these policies has been to maintain political and economic balance. Consequently, Malaysia’s leaders have concentrated on modifying agricultural pricing policies in degrees (for example, by adjusting to fluctuating world prices) rather than in kind, and they have endeavored to keep the producer price of rice stable and thus maintain the real purchasing power of the country’s politically powerful paddy farmers; help rubber and palm oil farmers improve productivity; set taxes on rubber and palm oil levels that provide funds for public investment; maintain an economy with fairly low or no tariffs on imported consumer goods and with very low or no tariffs on imported inputs; and contribute significant amounts of the revenues obtained from export of oil to the agricultural sector. The policies used to achieve these goals from 1960 to 1983, and their impact on Malaysian agriculture, are the subjects of this chapter.

Suggested Citation

  • Glenn Jenkins & ANDREW LAI, 1991. "The Political Economy Of Agricultural Pricing Policy: Malaysia," Development Discussion Papers 1991-06, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:92
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    File URL: https://cri-world.com/publications/qed_dp_92.pdf
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    References listed on IDEAS

    as
    1. Goldman, Richard H & Squire, Lyn, 1982. "Technical Change, Labor Use, and Income Distribution in the Muda Irrigation Project," Economic Development and Cultural Change, University of Chicago Press, vol. 30(4), pages 753-775, July.
    2. Glenn Jenkins & Andrew Lai, 1989. "Trade, Exchange Rate And Agricultural Policies In Malaysia," Development Discussion Papers 1989-04, JDI Executive Programs.
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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 Kiel).
    2. Kym Anderson, 1994. "Food Price Policy in East Asia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 8(2), pages 15-30, November.
    3. Hazell, Peter B.R., 2009. "The Asian Green Revolution:," IFPRI discussion papers 911, International Food Policy Research Institute (IFPRI).
    4. Eicher, Carl & Haggblade, Steven, 2013. "The Evolution of Agricultural Education and Training: Global Insights of Relevance for Africa," Food Security Collaborative Working Papers 183417, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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    More about this item

    Keywords

    Agricultural; Pricing Policy; Malaysia;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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