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Estimating the Impacts of Government Interventions in the International Rice Market

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  • Chi‐Chung Chen
  • Bruce A. McCarl
  • Ching‐Cheng Chang

Abstract

A procedure is developed to estimate the distortions and welfare impacts of government interventions in the international rice market. The procedure is based on a spatial equilibrium model and the application of conjectural variations. The model estimates asymmetric price distortions caused by policies in both exporting and importing countries. We find that the measures of price distortion are slightly larger due to actions in importing countries than in exporting countries. The results show that welfare gains of U.S.$1.2 billion or about 14.8% are possible when all trading distortions are removed. Nous avons mis au point une méthode pour estimer les répercussions de l'intervention gouvernementale sur les distorsions et le bien‐être sur le marché international du riz. Cette méthode est fondée sur un modèle d'équilibre spatial et l'application de variations conjecturales. Le modèle estime les distorsions de prix asymétriques causées par les politiques des pays exportateurs et importateurs. Nous avons trouvé que la distorsion des prix est légèrement plus élevée dans les pays importateurs que dans les pays exportateurs, en raison de leurs mesures respectives. Les résultats ont montré qu'il était possible de réaliser des gains de 1,2 milliard $US, soit environ 14.8 %, en éliminant la distorsions des échanges.

Suggested Citation

  • Chi‐Chung Chen & Bruce A. McCarl & Ching‐Cheng Chang, 2006. "Estimating the Impacts of Government Interventions in the International Rice Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 81-100, March.
    • Handle: RePEc:bla:canjag:v:54:y:2006:i:1:p:81-100
    DOI: 10.1111/j.1744-7976.2006.00039.x
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    References listed on IDEAS

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    1. Ingco, Merlinda & Ng, Francis, 1998. "Distortionary effects of state trading in agriculture : issues for the next round of negotiations," Policy Research Working Paper Series 1915, The World Bank.
    2. Antoine Bouët & Lionel Fontagné & Mondher Mimouni & Xavier Pichot, 2001. "Market Access Maps: A Bilateral and Disaggregated Measure of Market Access," Working Papers 2001-18, CEPII research center.
    3. Ackerman, Karen Z. & Dixit, Praveen M., 1999. "An Introduction To State Trading In Agriculture," Agricultural Economic Reports 33909, United States Department of Agriculture, Economic Research Service.
    4. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
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    1. Chi-Chung Chen & Bruce McCarl & Ching-Cheng Chang, 2012. "Climate change, sea level rise and rice: global market implications," Climatic Change, Springer, vol. 110(3), pages 543-560, February.

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