IDEAS home Printed from https://ideas.repec.org/a/oup/wbrobs/v13y1998i2p191-211.html
   My bibliography  Save this article

From Prices to Incomes: Agricultural Subsidization without Protection?

Author

Listed:
  • Baffes, John
  • Meerman, Jacob

Abstract

Drawing from the experience of the direct income support programs recently introduced in the European Union, Mexico, and the United States, this article highlights problems that may arise when the agricultural sector of a developing economy moves from price-based subsidization to less distorted income support. Such programs are a step in the right direction, but as currently implemented, they have many shortcomings. Moreover, developing countries may lack the necessary supporting arrangements needed to make such programs effective. The article argues that the programs should not restrict the use of land, that the programs should last for a stipulated period of time, and that the fiscal costs should be contained by linking income support payments to world prices. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Baffes, John & Meerman, Jacob, 1998. "From Prices to Incomes: Agricultural Subsidization without Protection?," World Bank Research Observer, World Bank Group, vol. 13(2), pages 191-211, August.
  • Handle: RePEc:oup:wbrobs:v:13:y:1998:i:2:p:191-211
    as

    Download full text from publisher

    File URL: http://www.worldbank.org/research/journals/wbro/obsaug98/pdf/article3.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318, May.
    2. Valdes, A, 1996. "Surveillance of Agricultural Price and Trade Policy in Latin America during Major Policy Reform," World Bank - Discussion Papers 349, World Bank.
    3. Varangis, Panos & Larson, Don, 1996. "Dealing with commodity price uncertainty," Policy Research Working Paper Series 1667, The World Bank.
    4. Levy, Santiago & Wijnbergen, Sweder van, 1994. "Labor markets, migration and welfare Agriculture in the North-American Free Trade Agreement," Journal of Development Economics, Elsevier, vol. 43(2), pages 263-278, April.
    5. Brooks, Karen M., 1993. "Challenges of trade and agricultural development for East/Central Europe and states of the former USSR," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 8(4), June.
    6. Junichi Goto, 1997. "Regional Economic Integration and Agricultural Trade," Discussion Paper Series 76, Research Institute for Economics & Business Administration, Kobe University.
    7. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank.
    8. Winters, L Alan, 1987. "The Political Economy of the Agricultural Policy of Industrial," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 14(3), pages 285-304.
    9. Brooks, Karen M., 1993. "Challenges of trade and agricultural development for East/Central Europe and states of the former USSR," Agricultural Economics, Blackwell, vol. 8(4), pages 401-420, June.
    10. Goto, Junichi, 1997. "Regional economic integration and agricultural trade," Policy Research Working Paper Series 1805, The World Bank.
    11. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April.
    12. Knudsen, O. & Nash, J., 1990. "Redefinig The Role Of Governement In Agriculture For The 1990s," World Bank - Discussion Papers 105, World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:6:p:906-:d:99965 is not listed on IDEAS
    2. Saldaña-Zorrilla, Sergio O., 2007. "Socio-economic vulnerability to natural disasters in Mexico: rural poor, trade and public response," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 92, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Schmook, Birgit & Vance, Colin, 2009. "Agricultural Policy, Market Barriers, and Deforestation: The Case of Mexico's Southern Yucatn," World Development, Elsevier, vol. 37(5), pages 1015-1025, May.
    4. John Baffes & Bruce Gardner, 2003. "The transmission of world commodity prices to domestic markets under policy reforms in developing countries," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(3), pages 159-180.
    5. Nejat ANBARCI & Mehmet ULUBASOGLU, "undated". "Endogenous Liberalization and Within-Country Inequality," EcoMod2010 259600008, EcoMod.
    6. Soloaga, Isidro & Lara, Gabriel, 2007. "Distortions to Agricultural Incentives in Mexico," Agricultural Distortions Working Paper 48432, World Bank.
    7. Baffes, John & De Gorter, Harry, 2005. "Disciplining agricultural support through decoupling," Policy Research Working Paper Series 3533, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:wbrobs:v:13:y:1998:i:2:p:191-211. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/wrldbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.