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The Impact of Industrial Protection on Agriculture: A General Equilibrium Analysis for Peninsular Malaysia

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  • Wiebelt, Manfred

Abstract

This paper quantitatively investigates the effects of trade policy on agriculture in Peninsular Malaysia using a multisectoral, general equilibrium model. In general, the results bear out the expectation that industrial protection distorts incentives favoring manufacturing and nontradable activities over agriculture as a whole. Whereas this result is familiar from other recent studies, the general-equilibrium approach allows many additional disaggregate findings. Industrial protection in Malaysia taxes, e.g., not all agricultural sectors. The rubber sector is discriminated by tariff protection for manufacturing, but the oil palm sector is favored due to string forward linkages to the protected industries. Copyright 1991 by Oxford University Press.

Suggested Citation

  • Wiebelt, Manfred, 1991. "The Impact of Industrial Protection on Agriculture: A General Equilibrium Analysis for Peninsular Malaysia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(1), pages 61-84.
    • Handle: RePEc:oup:erevae:v:18:y:1991:i:1:p:61-84
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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. Ali, Muhammad Fadzli & Akber, Md. Ali & Smith, Carl & Aziz, Ammar Abdul, 2021. "The dynamics of rubber production in Malaysia: Potential impacts, challenges and proposed interventions," Forest Policy and Economics, Elsevier, vol. 127(C).
    3. Wiebelt, M., 1992. "Boomende Exportmärkte und landwirtschaftliche Entwicklung: Eine allgemeine Gleichgewichtsanalyse für Malaysia," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 28.
    4. Amelung, Torsten & Wiebelt, Manfred, 1991. "Deforestation in the tropics: a framework for economic analysis," Kiel Working Papers 488, Kiel Institute for the World Economy (IfW Kiel).

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