IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/67556.html
   My bibliography  Save this paper

Impacts of the Economic Reform Program on the Performance of the Egyptian Agricultural sector

Author

Listed:
  • Soliman, Ibrahim
  • F. Fabiosa, Jacinto
  • Gaber Amer, Mohamed
  • Kandil, Siham

Abstract

From 1986 to 2007 Egypt's agricultural policy transitioned from a tightly controlled to a more liberalized regime. This study examines the impact of this change on the performance of the wheat (imported grain) and rice (exported grain) sectors. In terms of profitability, we found that the cost of production increased substantially in both grains, driven primarily by the rise in land rent and labor wage. But the wheat and rice sectors' profitability did not suffer significantly, as advances in new seed technologies and adoption of better farm practices including farm mechanization increased yield and compensated for the higher cost. Considering market efficiency, we found that over the study period the farmer's share of the consumer's expenditure dropped from 51% to 37% in the case of wheat, while it increased from 24% to 26% in the case of rice. The reverse happened for wholesale and retail margin share, where it increased for wheat and decreased for rice. It is likely that the discipline from foreign suppliers of imported wheat and foreign market opportunities for exported rice may explain the difference in the changes of the distribution of consumer expenditure. Finally, we found that area response elasticity decreased over time from 0.58 to 0.12 for rice and 0.60 to 0.38 for wheat. The lack of response in rice area despite rising prices is attributed to the land limit strictly imposed by the Government of Egypt because of water supply constraint considerations. On the other hand, the lack of response in wheat area despite rising wheat prices may be attributed to the rising competitiveness of Egyptian clover, which is a main feed ingredient for the growing livestock sector.

Suggested Citation

  • Soliman, Ibrahim & F. Fabiosa, Jacinto & Gaber Amer, Mohamed & Kandil, Siham, 2010. "Impacts of the Economic Reform Program on the Performance of the Egyptian Agricultural sector," MPRA Paper 67556, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:67556
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/67556/1/MPRA_paper_67556.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Soliman, Ibrahim, 1992. "Agricultural Mechanization And Economic Efficiency Of Agricultural Production In Egypt," Conference Papers 112669, Zagazig University, Department of Agricultural Economics.
    2. Soliman, Ibrahim & Ewaida, Osama, 1996. "Impact of technological changes and economic liberalization on agricultural labor employment and Productivity," MPRA Paper 31165, University Library of Munich, Germany, revised 29 Dec 1996.
    3. Rao, J. Mohan, 1989. "Agricultural supply response: A survey," Agricultural Economics, Blackwell, vol. 3(1), pages 1-22, March.
    4. Soliman, Ibrahim, 1991. "Feasibility of Buffalo Production in Egyptian Economy through A Planning Model," Conference Papers 210363, Zagazig University, Department of Agricultural Economics.
    5. Soliman, Ibrahim & Eid, Nafissa, 1995. "Impacts Of Egyptian Socio-Economic Environment On Dietary Pattern And Adequacy," Journal Articles 107278, Zagazig University, Department of Agricultural Economics.
    6. Soliman, Ibrahim, 1994. "Impacts of Gatt Implementation and Animal Protein Food System in Egypt," Journal Articles 210380, Zagazig University, Department of Agricultural Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Sabine Frerichs, 2016. "Egypt’s Neoliberal Reforms and the Moral Economy of Bread," Review of Radical Political Economics, Union for Radical Political Economics, vol. 48(4), pages 610-632, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soliman, Ibrahim & Bassiony, Hala, 2011. "Role of buffalo in international trade," MPRA Paper 36740, University Library of Munich, Germany, revised 10 Jun 2011.
    2. Ibrahim Soliman, 2015. "Diagnosis and Challenges of Sustainable Agricultural Development in Egypt," Cooperative Management, in: Michel Petit & Etienne Montaigne & Fatima El Hadad-Gauthier & José María García Álvarez-Coque & Kons (ed.), Sustainable Agricultural Development, edition 127, chapter 0, pages 19-64, Springer.
    3. Soliman, Ibrahim & Mashhour, Ahmed, 2011. "Dairy Marketing System Performance in Egypt," MPRA Paper 66799, University Library of Munich, Germany.
    4. Soliman, Ibrahim & Mashhour, Ahmed & Gaber, Mohamed, 2011. "A review of The National and International Agro‐Food Policies and Institutions in Egypt," MPRA Paper 66779, University Library of Munich, Germany, revised 15 May 2011.
    5. Soliman, Ibrahim, 2008. "Role of dairy buffalo in Egypt food security," MPRA Paper 31093, University Library of Munich, Germany, revised 30 Jun 2008.
    6. Nehring, Richard F., 1991. "Output and Input Subsidy Policy Options in Bangladesh," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 43(2), pages 1-13.
    7. Vavra, Pavel & Colman, David, 2003. "The analysis of UK crop allocation at the farm level: implications for supply response analysis," Agricultural Systems, Elsevier, vol. 76(2), pages 697-713, May.
    8. Christophe Gouel, 2013. "Rules versus Discretion in Food Storage Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 1029-1044.
    9. Soliman, Ibrahim & Ewaida, Osama, 1996. "Impact of technological changes and economic liberalization on agricultural labor employment and Productivity," MPRA Paper 31165, University Library of Munich, Germany, revised 29 Dec 1996.
    10. Eric B. Schneider, 2014. "Prices and production: agricultural supply response in fourteenth-century England," Economic History Review, Economic History Society, vol. 67(1), pages 66-91, February.
    11. Gouel, Christophe & Laborde, David, 2021. "The crucial role of domestic and international market-mediated adaptation to climate change," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    12. Chr. R. Weiss, 1992. "The Effect Of Price Reduction And Direct Income Support Policies On Agricultural Input Markets In Austria," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(1), pages 1-13, January.
    13. Md Shafiul Azam & Katsushi Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation: the Case of Cambodia," Economics Discussion Paper Series 1208, Economics, The University of Manchester.
    14. Hareau, Guy G. & Mills, Bradford F. & Norton, George W., 2006. "The potential benefits of herbicide-resistant transgenic rice in Uruguay: Lessons for small developing countries," Food Policy, Elsevier, vol. 31(2), pages 162-179, April.
    15. repec:ilo:ilowps:300473 is not listed on IDEAS
    16. Md Zabid Iqbal & Bruce A. Babcock, 2018. "Global growing‐area elasticities of key agricultural crops estimated using dynamic heterogeneous panel methods," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 681-690, November.
    17. Donato, Romano & Carraro, Alessandro, 2015. "Modelling Acreage, Production and Yield Supply Response to Domestic Price Volatility," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207278, Italian Association of Agricultural and Applied Economics (AIEAA).
    18. Helin Yin & Dong Jin & Yeong Hyeon Gu & Chang Jin Park & Sang Keun Han & Seong Joon Yoo, 2020. "STL-ATTLSTM: Vegetable Price Forecasting Using STL and Attention Mechanism-Based LSTM," Agriculture, MDPI, vol. 10(12), pages 1-17, December.
    19. Soliman, Ibrahim, 2013. "Oranges Sector in Egypt: Performance and Policies," MPRA Paper 114759, University Library of Munich, Germany.
    20. Soliman, Ibrahim & F. Mashhour, Ahmed, 2019. "Feasibility of Artificial Insemination Network for Egyptian Buffalo Development," MPRA Paper 114293, University Library of Munich, Germany.
    21. Liang, Yan & Miller, J. Corey & Harri, Ardian & Coble, Keith H., 2011. "Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 181-194, May.

    More about this item

    Keywords

    agricultural liberalization; area response elasticity; market efficiency; profitability.;
    All these keywords.

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    Statistics

    Access and download statistics

    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:pra:mprapa:67556. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.