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Distortions to Agricultural Incentives in Australia and New Zealand

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  • Anderson, Kym
  • Lattimore, Ralph G.
  • Lloyd, Peter J.
  • MacLaren, Donald

Abstract

In 1990, Australia and New Zealand were ranked around 25th and 35th in terms of GNP per capita, having been the highest-income countries in the world one hundred years earlier. The poor performance over that long period contrasts markedly with that of the past 15 years, when these two economies out-performed most other high-income countries. This difference in growth performance is due to major economic policy reforms during the past two to three decades. We provide new evidence on the extent of governmental distortions to agricultural incentives in particular in the two economies since the late 1940s, both directly and indirectly (and negatively) via manufacturing protection.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:aare07:10407
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    References listed on IDEAS

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    1. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
    2. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    3. Stähler, Frank & Raff, Horst & Long, Ngo Van, 2007. "The Effects of Trade Liberalization on Productivity and Welfare: The Role of Firm Heterogeneity, R&D and Market Structure," Economics Working Papers 2007-20, Christian-Albrechts-University of Kiel, Department of Economics.
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    5. Kym Anderson, 1978. "On Why Rates Of Assistance Differ Between Australia'S Rural Industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, pages 99-114.
    6. McLean, Ian W., 2007. "Why was Australia so rich?," Explorations in Economic History, Elsevier, vol. 44(4), pages 635-656, October.
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    8. Anderson, Kym, 1995. "Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 401-423, January.
    9. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    10. S.F. Harris, 1964. "Some Measures Of Levels Of Protection In Australia'S Rural Industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 8(2), pages 124-144, December.
    11. Productivity Commission, 2005. "Trends in Australian Agriculture," Research Papers 0502, Productivity Commission, Government of Australia.
    12. Martin, William J., 1990. "Public Choice Theory And Australian Agricultural Policy Reform," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 34(03), December.
    13. Edwards, Geoff W, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(181), pages 129-143, June.
    14. Vousden,Neil, 1990. "The Economics of Trade Protection," Cambridge Books, Cambridge University Press, number 9780521346696, March.
    15. Snape, R H, 1984. "Australia's Relations with GATT," The Economic Record, The Economic Society of Australia, vol. 60(168), pages 16-27, March.
    16. John G. Crawford., 1935. "Tariff Level Indices," The Economic Record, The Economic Society of Australia, vol. 10(1), pages 213-221, June.
    17. Kym Anderson, 2002. "International trade and industry policies," Centre for International Economic Studies Working Papers 2002-16, University of Adelaide, Centre for International Economic Studies.
    18. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 168-194.
    19. Glau, T.E., 1971. "The Cost-Price Squeeze On Australian Farm Income," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 15(01), April.
    20. 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.
    21. Harris, S.F., 1964. "Some Measures Of Levels Of Protection In Australia'S Rural Industries," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 8(02), December.
    22. McKay, D.H., 1967. "The Small-Farm Problem In Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 11(02), December.
    23. Ben Dolman & Dean Parham & Simon Zheng, 2007. "Can Australia Match US Productivity Performance?," Staff Working Papers 0703, Productivity Commission, Government of Australia.
    24. Anderson, Kym, 1980. "The Political Market for Government Assistance to Australian Manufacturing Industries," The Economic Record, The Economic Society of Australia, vol. 56(153), pages 132-144, June.
    25. Honma, Masayoshi & Hayami, Yujiro, 2007. "Distortions to Agricultural Incentives in Korea and Taiwan," Agricultural Distortions Working Paper 48479, World Bank.
    26. D. MacLaren, 1992. "The Political Economy Of Agricultural Policy Reform In The European Community And Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 424-439.
    27. Harris, David N. & Rae, Allan N., 2004. "Agricultural Policy Reform and Industry Adjustment in Australia and New Zealand," IAPRAP\IATRC Summer Symposium, Adjusting to Domestic and International Agricultural Reform in Industrial Countries, June 6-7, 2004, Philadelphia, PA 15762, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. 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.
    3. Kerr, Suzi & Zhang, Wei & Power, William, 2010. "Short term effects of moderate carbon prices on land use in the New Zealand emissions trading system: LURNZ-climate land use change simulations," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96941, New Zealand Agricultural and Resource Economics Society.
    4. Anderson, Kym, 2009. "Krueger/Schiff/Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," CEPR Discussion Papers 7601, C.E.P.R. Discussion Papers.
    5. 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.
    6. Rozelle, Scott & Swinnen, Johan F.M., 2009. "Political Economy of Agricultural Distortions in Transition Countries of Asia and Europe," Agricultural Distortions Working Paper 50298, World Bank.
    7. 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, pages 423-477.
    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. 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.
    10. Allan, Corey & Kerr, Suzi, 2013. "Examining Patterns in and Drivers of Rural Land Values," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160191, New Zealand Agricultural and Resource Economics Society.
    11. Olssen, Alex & Kerr, Suzi, 2011. "Modelling Land Use in Rural New Zealand," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115413, New Zealand Agricultural and Resource Economics Society.
    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. Ralph Lattimore & Trinh Le & Iris Claus & Adolf Stroombergen., 2009. "Economic progress and puzzles : Long-term structural change in the New Zealand economy, 1953-2006," Macroeconomics Working Papers 23006, East Asian Bureau of Economic Research.
    14. Kym Anderson & Johanna Croser, 2011. "Novel indicators of the trade and welfare effects of agricultural distortions in OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 269-302, June.
    15. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    16. 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.
    17. Anderson, Kym & de Nicola, Francesca & Jara, Esteban & Kurzweil, Marianne & Sandri, Damiano & Valenzuela, Ernesto, 2007. "Distortions in farmer prices since 1950s: South Africa in international perspective," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(4), December.
    18. Peter Lloyd & Peter Lloyd, 2013. "Relative Assistance to Agriculture and Manufacturing since Federation," Department of Economics - Working Papers Series 1173, The University of Melbourne.
    19. Kym Anderson, 2010. "The Impact of Manufacturing Protection on Agricultural Incentives in Australia," World Scientific Book Chapters,in: Light The Lamp Papers on World Trade and Investment in Memory of Bijit Bora, chapter 4, pages 85-115 World Scientific Publishing Co. Pte. Ltd..
    20. Suzi Kerr & Alex Olssen, 2012. "Gradual Land-use Change in New Zealand: Results from a Dynamic Econometric Model," Working Papers 12-06, Motu Economic and Public Policy Research.
    21. Wood, Amanda & Tenbensel, Tim & Utter, Jennifer, 2013. "The divergence of country of origin labelling regulations between Australia and New Zealand," Food Policy, Elsevier, vol. 43(C), pages 132-141.

    More about this item

    Keywords

    Distorted incentives; agricultural and trade policy reform; Agricultural and Food Policy; F13; F14; Q17; Q18;

    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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