IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v34y2006i1p17-23.html
   My bibliography  Save this article

Social welfare effects of removing multiple exchange rates: evidence from the rice trade in Iran

Author

Listed:
  • M. Bakhshoodeh
  • K. J. Thomson

Abstract

In order to encourage the involvement of the private sector in importing rice, the Iranian government plans to relax the system of multiple foreign exchange rates applied to importers wishing to supply the domestic market. In this article, the welfare effects of removing the current controls on the rice trade, and a domestic rice coupon program, are evaluated by applying a partial equilibrium analysis to 1961–1999 data. The results show that, as far as foreign exchange is concerned, liberalization of the rice market causes an increase in rice imports, mainly due to a decrease in domestic supply. In welfare terms, the loss in producer surplus from rice market liberalization is relatively high, but most rice consumers, and the Iranian taxpayer, would gain. Overall, gains to consumers and taxpayers are estimated to be higher than the losses incurred by domestic suppliers, and therefore net social welfare at national level can be improved by rice market liberalization in Iran. Issues for further discussion include residual food security roles for the state, and supply‐side adjustments in terms of resource use and higher‐quality production.

Suggested Citation

  • M. Bakhshoodeh & K. J. Thomson, 2006. "Social welfare effects of removing multiple exchange rates: evidence from the rice trade in Iran," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 17-23, January.
    • Handle: RePEc:bla:agecon:v:34:y:2006:i:1:p:17-23
    DOI: 10.1111/j.1574-0862.2006.00099.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1574-0862.2006.00099.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1574-0862.2006.00099.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jagdish N. Bhagwati, 1978. "Appendix to "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 219-221, National Bureau of Economic Research, Inc.
    2. Najafi, Bahaeddin & Bakhshoodeh, Mohamad, 2002. "Effectiveness of Government Protective Policies on Rice Production in Iran," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24922, European Association of Agricultural Economists.
    3. Bojnec, Stefan & Munch, Wolfgang & Swinnen, Johan F.M., 1997. "EXCHANGE RATES AND THE MEASUREMENT OF AGRICULTURAL PRICE DISTORTIONS IN CEECs AND OF CEEC-EU ACCESSION COSTS," PRG Working Papers 31863, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    4. Ellis,Frank, 1992. "Agricultural Policies in Developing Countries," Cambridge Books, Cambridge University Press, number 9780521395847.
    5. Lavoie, Nathalie, 2003. "The Impact Of Reforming Wheat Importing State-Trading Enterprises On The Quality Of Wheat Imported," Working Paper Series 14512, University of Massachusetts, Amherst, Department of Resource Economics.
    6. Lavoie, Nathalie, 2003. "The Impact Of Reforming Wheat Importing State-Trading Enterprises On The Quality Of Wheat Imported," 2003 Annual meeting, July 27-30, Montreal, Canada 21901, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Jagdish N. Bhagwati, 1978. "Anatomy of Exchange Control Regimes," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, pages 7-52, National Bureau of Economic Research, Inc.
    8. Jagdish N. Bhagwati, 1978. "Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bakhshoodeh, M., 2010. "Impacts of world prices transmission to domestic rice markets in rural Iran," Food Policy, Elsevier, vol. 35(1), pages 12-19, February.
    2. Mohammad Bakhshoodeh, 2008. "Impacts of World Prices Transmission to Domestic Markets and Welfare of Marginal Households: An Empirical Application to Rice in Iran," Working Papers 399, Economic Research Forum, revised 03 Jan 2008.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iamsiraroj, Sasi, 2016. "The foreign direct investment–economic growth nexus," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 116-133.
    2. Stanley Black, 1984. "The Relationship between Exchange Rate Policy and Monetary Policy in Ten Industrial Countries," NBER Chapters, in: Exchange Rate Theory and Practice, pages 499-516, National Bureau of Economic Research, Inc.
    3. Hiemenz, Ulrich & Li, Bo, 1988. "Zur gesamtwirtschaftlichen Effizienz ausländischer Direktinvestitionen in den Küstenregionen der VR China," Kiel Working Papers 335, Kiel Institute for the World Economy (IfW Kiel).
    4. Kym Anderson & Johan Swinnen, 2008. "Distortions to Agricultural Incentives in Europe's Transition Economies," World Bank Publications - Books, The World Bank Group, number 6502, December.
    5. Santiago Mosquera & Federico Sturzenegger, 2021. "Cepo para principantes," Working Papers 151, Universidad de San Andres, Departamento de Economia, revised Apr 2021.
    6. Anne O. Krueger, 2019. "Increased capital mobility and policy reform in developing countries," Indian Economic Review, Springer, vol. 54(1), pages 113-133, December.
    7. Iti Vyas, 2020. "Whether the Economic Growth of India is Trade Openness Led?," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(1), pages 38-53.
    8. Weinhold, Diana & Nair-Reichert, Usha, 2009. "Innovation, Inequality and Intellectual Property Rights," World Development, Elsevier, vol. 37(5), pages 889-901, May.
    9. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
    10. Patrick PLANE & Mohamed CHAFFAI, 2006. "Total Factor Productivity of Tunisia’s manufacturing sectors: measurement, determinants and convergence towards OECD countries," Working Papers 200622, CERDI.
    11. Kym Anderson, 2003. "Measuring Effects of Trade Policy Distortions: How Far Have We Come?," The World Economy, Wiley Blackwell, vol. 26(4), pages 413-440, April.
    12. Nasim Shah Shirazi & Turkhan Ali Abdul Manap, 2005. "Export-Led Growth Hypothesis: Further Econometric Evidence From South Asia," The Developing Economies, Institute of Developing Economies, vol. 43(4), pages 472-488, December.
    13. Shafaai, Shafizal & Masih, Mansur, 2018. "The dynamics of growth, exports, exchange rate and foreign direct investment: evidence from Malaysia," MPRA Paper 102538, University Library of Munich, Germany.
    14. Sebastian Edwards, 1989. "Structural Adjustment Policies in Highly Indebted Countries," NBER Chapters, in: Developing Country Debt and the World Economy, pages 249-262, National Bureau of Economic Research, Inc.
    15. Kalsoom Zulfiqar & Rukhsana Kausar, 2012. "Trade Liberalization, Exchange Rate And Export Growth In Pakistan," Far East Journal of Psychology and Business, Far East Research Centre, vol. 9(3), pages 32-47, November.
    16. Tesfachew T., 1992. "Government policies and the urban informal sector in Africa," ILO Working Papers 992899183402676, International Labour Organization.
    17. Mouna Gammoudi & Mondher Cherif, 2016. "Threshold effects in the capital account liberalization and foreign direct investment relationship," Middle East Development Journal, Taylor & Francis Journals, vol. 8(1), pages 156-175, January.
    18. Daniel Sakyi & Richmond Commodore & Eric Evans Osei Opoku, 2015. "Foreign Direct Investment, Trade Openness and Economic Growth in Ghana: An Empirical Investigation," Journal of African Business, Taylor & Francis Journals, vol. 16(1-2), pages 1-15, January.
    19. Cunha, Aercio S. & Kyle, Steven, 1989. "Natural Resources, Structural Adjustment, and Sustainable Growth in Sub-Saharan Africa: A Critique of Policy Recommendations," Staff Papers 197578, Cornell University, Department of Applied Economics and Management.
    20. Bernard M. Hoekman, 2013. "Multilateral Institutions and African Economic Integration," RSCAS Working Papers 2013/67, European University Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:34:y:2006:i:1:p:17-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.