How Successful Are Government Interventions In Food Markets? Insights From The Philippine Rice Market
We investigate the Philippine government’s price stabilization policy for rice. Seemingly Unrelated Regressions are used to examine the effectiveness of the program at regional and national levels over a 21-year period (January 1983 to December 2003). Results of the regional analysis indicate some NFA-induced spatial and temporal differences in terms of producer prices. The NFA successfully increased producer prices in 5 of 13 regions through stock accumulation and paddy rice purchase at floor prices. NFA stock releases do not correlate strongly with retail prices at the national level, although results from the regional model indicate that NFA stock releases reduced retail prices in five regions, leading to perceptible spatial and temporal differences between regions. Although the NFA support price appears to have been moderately successful in increasing producer prices at a national level, on average, the support price led to an increase in consumer prices in ten regions and contributed little to price stabilization. Overall, therefore, our results indicate very limited success on the part of the NFA to achieve its major objectives at either regional or national level. We suggest the NFA should concentrate its resources in the poorest areas of the country, where it might exert greater and more useful influence in smaller and locally thin rice markets.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 765 494-4191
Fax: 765 494-9176
Web page: http://www.agecon.purdue.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:cup:cbooks:9780521565882 is not listed on IDEAS
- David, Cristina C., 1997. "Food Policy: Its Role in Price Stability and Food Security," Philippine Journal of Development JPD 1997 Vol. XXIV No.1-e, Philippine Institute for Development Studies.
- Martinez, Elmer & Shively, Gerald E. & Masters, William J., 1998. "Testing The Link Between Public Intervention And Food Price Variability: Evidence From Rice Markets In The Philippines," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20883, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- repec:cup:cbooks:9780521326162 is not listed on IDEAS
- David, Cristina C., 1997. "Food Policy: Its Role in Price Stability and Food Security," Discussion Papers DP 1997-11, Philippine Institute for Development Studies.
- Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, World Bank Group, vol. 9(3), pages 477-508, September.
When requesting a correction, please mention this item's handle: RePEc:pae:wpaper:05-06. 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: (Debby Weber)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.