IDEAS home Printed from https://ideas.repec.org/p/fpr/tmddps/19.html
   My bibliography  Save this paper

Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis

Author

Listed:
  • Robinson, Sherman
  • El-Said, Moataz
  • San, Nu Nu
  • Suryana, Achmad
  • Swastika, Dewa
  • Bahri, Sjaiful

Abstract

This paper presents an agriculture sector focused Computable General Equilibrium (AG-CGE) model for analyzing the economy-wide impacts of changes in technology, protection, and market structure on resource allocation, production, and trade in Indonesia. The paper incorporates a specification of the rice market and models the government price-support, stocking, and trade policies for rice using a mixed complementarity approach. This approach allows the specification of inequalities and changes in policy regime as prices and/or stocks move within specified bands. The model is used to examine the impact on the Indonesian economy of changes in rice yields given different assumptions about the operations of Bulog (National Logistic Agency). The general equilibrium approach captures and quantifies the effects of the price support policies on resource allocation, trade, relative prices, and the government budget. An important result is that there is inefficient allocation of resources within the agriculture sector and the rest of the economy if Bulog operates to maintain the rice price when there are significant increases in rice productivity. Instead of releasing resources to other high-value agriculture uses and non-agriculture uses, the price support scheme attracts more resources into rice production. In addition, the price support program is costly and strains the government accounts, even if the administrative costs of operating the program are ignored.

Suggested Citation

  • Robinson, Sherman & El-Said, Moataz & San, Nu Nu & Suryana, Achmad & Swastika, Dewa & Bahri, Sjaiful, 1997. "Rice price policies in Indonesia: a computable general equilibrium (CGE) analysis," TMD discussion papers 19, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:tmddps:19
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/tmdp19.pdf
    Download Restriction: no

    Citations

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


    Cited by:

    1. Cogneau, Denis & Robilliard, Anne-Sophie, 2000. "Growth, distribution and poverty in Madagascar," TMD discussion papers 61, International Food Policy Research Institute (IFPRI).
    2. Cororaton, Caesar B., 2004. "Rice Reforms and Poverty in the Philippines: A CGE Analysis," Discussion Papers DP 2004-14, Philippine Institute for Development Studies.
    3. Robinson, Sherman & El-Said, Moataz & San, Nu Nu, 1998. "Rice policy, trade, and exchange rate changes in Indonesia: A general equilibrium analysis," Journal of Asian Economics, Elsevier, vol. 9(3), pages 393-423.
    4. Cororaton, Caesar B. & Orden, David, 2008. "Pakistan's cotton and textile economy: Intersectoral linkages and effects on rural and urban poverty," Research reports 158, International Food Policy Research Institute (IFPRI).

    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:fpr:tmddps:19. 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: (). General contact details of provider: http://edirc.repec.org/data/ifprius.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.

    We have no references for this item. You can help adding them by using 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.