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Using Energy Resources to Diversify the Economy: Agricultural Price Distortions in Kazakhstan

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  • Richard Pomfret

    ([1] Department of Economics, University of Adelaide, Adelaide SA 5005, Australia[2] The Johns Hopkins University School of Advanced International Studies, Bologna, Italy)

Abstract

Kazakhstan's government has used oil revenues to promote economic diversification, including a billion dollar 2003–2005 Agriculture and Food Program to reverse the 1990s decline in agricultural output. This paper provides estimates of producer support equivalents for the main agricultural products in order to establish whether announced policies actually improved incentives for farmers. Although the estimates are approximate, they present a pattern of price distortions working against farmers in the 1990s and moving strongly in their favour since 2001. In sum, quantification of price distortions supports the government's claim that it has used the country's energy resources to promote agriculture. Comparative Economic Studies (2009) 51, 181–212. doi:10.1057/ces.2008.48

Suggested Citation

  • Richard Pomfret, 2009. "Using Energy Resources to Diversify the Economy: Agricultural Price Distortions in Kazakhstan," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 51(2), pages 181-212, June.
  • Handle: RePEc:pal:compes:v:51:y:2009:i:2:p:181-212
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    Cited by:

    1. Richard Pomfret, 2011. "Exploiting Energy and Mineral Resources in Central Asia, Azerbaijan and Mongolia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 53(1), pages 5-33, March.

    More about this item

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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