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Distortions to Agricultural Incentives in Australia Since World War II

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Listed:
  • Kym Anderson

    () (School of Economics, University of Adelaide)

  • Peter Lloyd

    () (University of Melbourne)

  • Donald MacLaren

    () (University of Melbourne)

Abstract

AustraliaÂ’s lacklustre economic growth performance in the first four decades following World War II was in part due to an anti-trade, anti-primary sector bias in government assistance policies. This paper provides new annual estimates of the extent of those biases since 1946 and their gradual phase-out during the past two decades. In doing so it reveals that the timing of the sectoral assistance cuts was such as sometimes to improve but sometimes to worsen the distortions to incentives faced by farmers. Also, the changes increased the variation of assistance rates within agriculture during the 1950s and 1960s, reducing the welfare contribution of those programs in that period. While the assistance pattern within agriculture appears not to have been strongly biased against exporters, its reform has coincided with a substantial increase in export orientation of many farm industries. The overall pattern for Australia is contrasted with that revealed by comparable new estimates for other high-income countries.

Suggested Citation

  • Kym Anderson & Peter Lloyd & Donald MacLaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," Centre for International Economic Studies Working Papers 2007-01, University of Adelaide, Centre for International Economic Studies.
  • Handle: RePEc:adl:cieswp:2007-01
    as

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    File URL: http://www.adelaide.edu.au/cies/papers/0701.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring distortions to agricultural incentives, revisited," World Trade Review, Cambridge University Press, vol. 7(04), pages 675-704, October.
    2. Kym Anderson, 2013. "Agricultural price distortions: trends and volatility, past, and prospective," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 163-171, November.
    3. MacLaren, Donald & Lloyd, Peter J., 2008. "Measuring assistance to the agricultural industry in Australia using a Production Assistance Index," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6033, Australian Agricultural and Resource Economics Society.
    4. Kym Anderson & Ernesto Valenzuela, 2011. "Agricultural Policy as a Barrier to Global Economic Integration," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 11 Edward Elgar Publishing.
    5. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    6. Anderson, Kym & Croser, Johanna L. & Sandri, Damiano & Valenzuela, Ernesto, 2009. "Agricultural Distortion Patterns Since the 1950s: What Needs Explaining?," Agricultural Distortions Working Paper 50305, World Bank.
    7. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2013. "Estimating Effects of Price-Distorting Policies Using Alternative Distortions Databases," Handbook of Computable General Equilibrium Modeling, Elsevier.
    8. Nogues, Julio, 2015. "Barreras sobre las exportaciones agropecuarias: impactos económicos y sociales de su eliminación
      [Dismantling export barriers: economic and social impacts]
      ," MPRA Paper 83223, University Library of Munich, Germany.
    9. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2007. "China, the WTO, and the Doha Agenda," Centre for International Economic Studies Working Papers 2007-02, University of Adelaide, Centre for International Economic Studies.
    10. Demirdöğen, Alper, 2011. "Tarımsal Korumacılık, Korumacılığın Ölçümü ve Türkiye
      [Agricultural Protectionism, Its Measurement and Turkey]
      ," MPRA Paper 35083, University Library of Munich, Germany.
    11. Kym Anderson, 2009. "Distorted Agricultural Incentives and Economic Development: Asia's Experience," The World Economy, Wiley Blackwell, vol. 32(3), pages 351-384, March.
    12. Kym Anderson, 2016. "Sectoral trends and shocks in Australia’s economic growth," Departmental Working Papers 2016-18, The Australian National University, Arndt-Corden Department of Economics.
    13. Kym Anderson & James Giesecke & Ernesto Valenzuela, 2010. "How would global trade liberalization affect rural and regional incomes in Australia?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 389-406, October.
    14. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.
    15. Anderson, Kym, 2009. "Political Economy of Distortions to Agricultural Incentives: Introduction and Summary," Agricultural Distortions Working Paper 50306, World Bank.
    16. Anderson, Kym & Strutt, Anna, 2014. "Food security policy options for China: Lessons from other countries," Food Policy, Elsevier, vol. 49(P1), pages 50-58.
    17. Herault, Nicolas & Thurlow, James, 2009. "Agricultural Distortions, Poverty and Inequality in South Africa," Agricultural Distortions Working Paper 52792, World Bank.
    18. repec:bla:ozechr:v:57:y:2017:i:1:p:2-21 is not listed on IDEAS
    19. Peter Lloyd & Peter Lloyd, 2013. "Relative Assistance to Agriculture and Manufacturing since Federation," Department of Economics - Working Papers Series 1173, The University of Melbourne.
    20. de Wit, Marc & Londo, Marc & Faaij, André, 2011. "Productivity developments in European agriculture: Relations to and opportunities for biomass production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2397-2412, June.

    More about this item

    Keywords

    Distorted incentives; manufacturing protection; agricultural assistance; trade policy reform;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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