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Assessing the Impact of Agricultural Technology Improvements in Developing Countries in the Presence of Policy Distortions

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  • Anania, Giovanni
  • McCalla, Alex F

Abstract

This paper focusses on how policies most commonly used by developing countries affect both the size and the distribution of the benefits from technical change. Three sets of policies are analysed: different export taxes whose level is endogenously determined, interventions to expand domestic consumption (a consumer subsidy and a food aid programme are considered), and the existence of a constraint on the foreign exchange which can be used to finance food imports. In some cases the benefits from the new technology are enhanced by the policy distortion, in others they are reduced. Even when the benefits from the new technology with the policy distortion in place are the same as those that would occur in a distortion-free world market, their distribution is different. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Anania, Giovanni & McCalla, Alex F, 1995. "Assessing the Impact of Agricultural Technology Improvements in Developing Countries in the Presence of Policy Distortions," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(1), pages 5-24.
  • Handle: RePEc:oup:erevae:v:22:y:1995:i:1:p:5-24
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    References listed on IDEAS

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    2. Perron, Pierre, 1997. "Further evidence on breaking trend functions in macroeconomic variables," Journal of Econometrics, Elsevier, pages 355-385.
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    6. Seo, Byeongseon, 2007. "Asymptotic distribution of the cointegrating vector estimator in error correction models with conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 137(1), pages 68-111, March.
    7. Hamelinck, Carlo N & Faaij, Andre P.C., 2006. "Outlook for advanced biofuels," Energy Policy, Elsevier, vol. 34(17), pages 3268-3283, November.
    8. Kelvin Balcombe & Alastair Bailey & Jonathan Brooks, 2007. "Threshold Effects in Price Transmission: The Case of Brazilian Wheat, Maize, and Soya Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 308-323.
    9. Oecd, 2006. "Agricultural Market Impacts of Future Growth in the Production of Biofuels," OECD Papers, OECD Publishing, pages 1-57.
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    Cited by:

    1. Johan F.M. Swinnen & Harry de Gorter, 1998. "Endogenous Commodity Policies and the Social Benefits from Public Research Expenditures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 107-115.
    2. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy.
    3. Msuya, E. E & Isinika, A. C., 2011. "Addressing food self-sufficiency in Tanzania: a balancing act of policy coordination," MPRA Paper 30886, University Library of Munich, Germany.

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