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An Emerging Agricultural Problem in High-Performing Asian Economies

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  • Hayami, Yujiro

Abstract

Policies to tax farmers in low-income countries and policies to subsidize them in high-income countries have been identified as a major source of the disequilibrium of world agriculture. Recently, as many high-performing economies in Asia advanced from the low-income to the middle-income stage through successful industrialization, they are confronted with the problem of a widening income gap between farm and non-farm workers corresponding to rapid shifts in comparative advantage from agriculture to manufacturing. In order to prevent this disparity from culminating in serious social and political instability, policies have been reoriented toward supporting the income of farmers. At the same time, governments in middle-income countries must continue to secure low-cost food to the urban poor who are still large in number. The need to achieve the two conflicting goals under the still weak fiscal capacity of governments tends to make agricultural policies in the middle-income stage tinkering and ineffective. Greater research inputs in this area are called for in order to prevent the growth momentum of high-performing economies in Asia from being disrupted by political crises, as illustrated by the bent of Japan toward militarism during the period between the two World Wars.

Suggested Citation

  • Hayami, Yujiro, 2005. "An Emerging Agricultural Problem in High-Performing Asian Economies," Miscellaneous Papers 11826, Agecon Search.
  • Handle: RePEc:ags:miscpa:11826
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    File URL: http://purl.umn.edu/11826
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    References listed on IDEAS

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    1. Yujiro Hayami & Yoshihisa Godo, 2004. "The Three Agricultural Problems in the Disequilibrium of World Agriculture," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 1(1), pages 3-16, June.
    2. Hayami, The late Yujiro & Godo, Yoshihisa, 2005. "Development Economics: From the Poverty to the Wealth of Nations," OUP Catalogue, Oxford University Press, edition 3, number 9780199272716.
    3. Douangngeune, Bounlouane & Hayami, Yujiro & Godo, Yoshihisa, 2005. "Education and natural resources in economic development: Thailand compared with Japan and Korea," Journal of Asian Economics, Elsevier, vol. 16(2), pages 179-204, April.
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    Cited by:

    1. Christiaensen, Luc & Pan,Lei & Wang, Sangui, 2010. "Drivers of Poverty Reduction in Lagging Regions: Evidence from Rural Western China," WIDER Working Paper Series 035, World Institute for Development Economic Research (UNU-WIDER).
    2. Anderson, Kym, 2009. "Krueger/Schiff/Vald├ęs Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," CEPR Discussion Papers 7601, C.E.P.R. Discussion Papers.
    3. Anderson, Kym & Martin, William J. & Valenzuela, Ernesto, 2007. "Long Run Implications of WTO Accession for Agriculture in China," China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55025, International Agricultural Trade Research Consortium.
    4. Olper, Alessandro & Raimondi, Valentina & Bertoni, Danilo & Cavicchioli, Daniele, 2013. "Patterns and Determinants of Off-Farm Migration: Transfer frictions and persistency of relative income gaps," Factor Markets Working Papers 146, Centre for European Policy Studies.
    5. Takahashi, Daisuke & Honma, Masoyoshi, 2015. "A Reexamination of the Agricultural Adjustment Problem in Japan," 2015 Conference, August 9-14, 2015, Milan, Italy 212592, International Association of Agricultural Economists.
    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. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    8. Will J. Martin & Kym Anderson & Cong S. Pham, 2009. "Effects of GATT/WTO on Asia's Trade Performance," School of Economics Working Papers 2009-11, University of Adelaide, School of Economics.
    9. Aksoy , M. Ataman & Isik-Dikmelik, Aylin, 2008. "Are low food prices pro-poor ? net food buyers and sellers in low-income countries," Policy Research Working Paper Series 4642, The World Bank.
    10. Kym Anderson, 2006. "Reducing Distortions to Agricultural Incentives: Progress, Pitfalls, and Prospects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1135-1146.

    More about this item

    Keywords

    Agricultural and Food Policy;

    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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