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The Relative Welfare Cost of Industrial and Agricultural Policy Distortions: A Philippine Illustration

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  • Clarete, Ramon L
  • Roumasset, James A

Abstract

An applied general equilibrium model of the Philippine economy is described and calibrated for evaluating the relative welfare cost of industrial/trade and agricultural policies. Industrial policies have larger economic waste relative to agricultural policies. Agricultural policy reforms without accompanying liberalization of foreign trade regimes result in relatively small improvement in economic welfare and, in the case of export and production taxes, may even be welfare worsening. Copyright 1990 by Royal Economic Society.

Suggested Citation

  • Clarete, Ramon L & Roumasset, James A, 1990. "The Relative Welfare Cost of Industrial and Agricultural Policy Distortions: A Philippine Illustration," Oxford Economic Papers, Oxford University Press, vol. 42(2), pages 462-472, April.
  • Handle: RePEc:oup:oxecpp:v:42:y:1990:i:2:p:462-72
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    Cited by:

    1. Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April.
    2. James Roumasset, 2010. "Wither the Economics of Agricultural Development?," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 1-22, June.
    3. David, Cristina C. & Intal, Ponciano & Balisacan, Arsenio M., 2007. "Distortions to Agricultural Incentives in the Philippines," Agricultural Distortions Working Paper 48477, World Bank.
    4. Sinha, Anushree & Khan, Haider, 2008. "Gender and Informal Sector Analysis in India: Economy Wide Approaches," WIDER Working Paper Series 065, World Institute for Development Economic Research (UNU-WIDER).

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