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Price Protection and Productivity Growth

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  • Nicholas G. Kalaitzandonakes

Abstract

This study provides empirical evidence on the relationship between price protection and productivity growth. From theoretical considerations, it is concluded that the impact of price protection on productivity growth is ambiguous. Although protectionism may in some instances stimulate investment and adoption of new technologies, efficiency may decrease, particularly when farm prices and income are high. Empirical evidence from the New Zealand beef/sheep industry indicates that high protection during the 1975–85 period produced negative productivity growth. Following market liberalization in 1985, productivity growth increased substantially.

Suggested Citation

  • Nicholas G. Kalaitzandonakes, 1994. "Price Protection and Productivity Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 722-732.
    • Handle: RePEc:oup:ajagec:v:76:y:1994:i:4:p:722-732.
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    File URL: http://hdl.handle.net/10.2307/1243734
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    Cited by:

    1. Lagerkvist, Carl Johan & Gregory, Mark & Olson, Kent D., 2003. "Enhancing The Competitiveness And Risk-Efficiency Of Farm Assets Through Holding Farm/Financial Asset And Off-Farm Income Portfolios," 2003 Annual meeting, July 27-30, Montreal, Canada 22125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Khanna, Madhu & Zilberman, David, 1997. "Incentives, precision technology and environmental protection," Ecological Economics, Elsevier, vol. 23(1), pages 25-43, October.
    3. Catherine Morrison Paul, 2003. "Productivity and Efficiency Measurement in Our “New Economy”: Determinants, Interactions, and Policy Relevance," Journal of Productivity Analysis, Springer, vol. 19(2), pages 161-177, April.
    4. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Economic Efficiency In Organic Farming: Evidence From Cotton Farms In Viotia, Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(1), pages 1-14, April.
    5. Fletschner, Diana K. & Zepeda, Lydia, 2002. "Efficiency Of Small Landholders In Eastern Paraguay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-19, December.
    6. Ortmann, Gerald F., 2000. "Promoting competitiveness in South African agriculture and agribusiness: The role of institutions," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(4), pages 1-33, March.
    7. Morrison Paul, Catherine J., 2000. "Productivity And Efficiency In The U.S. Food System, Or, Might Cost Factors Support Increasing Mergers And Concentration?," Working Papers 11983, University of California, Davis, Department of Agricultural and Resource Economics.

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