Agricultural Producer Support Estimates for Developing Countries: Measurement Issues and Evidence from India, Indonesia, China, and Vietnam

Orden, David; Cheng, Fuzhi; Nguyen, Hoa; Grote, Ulrike; Thomas, Marcelle; Mullen, Kathleen J.; Sun, Dongsheng

doi:10.2499/9780896291607rr152

Cited by 16 publications

(3 citation statements)

References 39 publications

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“…Economic measurements of support use the gap between a domestic price and a current international reference price, a gap that for many products and in many years has been negative in India (see, e.g., Orden et al (2007), Pursell et al (2009) andRaju (2013)). To the extent that the minimum support prices in India were raised more slowly than the run-ups in the international prices of many agricultural commodities around 2008 and 2011, the existing negative price gaps would have been made more negative and positive price gaps could have become negative.…”

Section: Economic Measurements Of Supportmentioning

confidence: 99%

“…Based on the pioneering of work of Josling (1973), the notion of accounting for both types of support has been applied for a large and growing number of countries by the OECD (Organization for Economic Cooperation and Development) since 1986. While the OECD's Producer Support Estimates do not include estimates for India, estimation procedures similar to those developed by the OECD but differing in several ways have been used by, for example, Orden et al (2007), Pursell et al (2009), and Raju (2013) to generate estimates of support to agricultural producers in India. Because of the methodological differences those estimates are not always directly comparable with the estimates that might have resulted from standard OECD estimation procedures.…”

Section: Introductionmentioning

confidence: 99%

“…For reviews and assessments of agricultural policies in India, see, for example,Gopinath (2011Gopinath ( , 2012, Gulati (2007, 2013),Jha et al (2007), OECD (2007),Orden et al (2007),Pursell et al (2009), Raju (2013, and USDA (2012).…”

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confidence: 99%

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Support to Agriculture in India in 1995-2013 and the Rules of the WTO

Brink¹

2014

SSRN Journal

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India has submitted notifications to the World Trade Organization (WTO) on domestic support to agricultural producers in 1995-2003. This paper reviews India's notifications and summarizes the related discussion in the WTO Committee on Agriculture of some key issues relating to the rules of the Agreement on Agriculture on domestic support. It calculates price gaps for rice, wheat, cotton and sugarcane in 1995 to 2013 under four scenarios regarding the external reference price and calculates the resulting market price support using total production and procurement quantities. It compares the associated Aggregate Measurements of Support (AMSs) to their limits based on value of production. The AMSs show large excesses above their limits over many years until 2013 for several crops under some readings of the Agreement but much less so if certain adjustments are made. This highlights the differences among alternative interpretations of the Agreement in determining compliance with a country's obligations, in particular the understanding of the fixed external reference price and the production eligible to receive the applied administered price. The paper puts India's administered pricing in the context of the 2013 decision of WTO ministers regarding protection under some conditions against challenge under the WTO dispute settlement mechanism.

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Section: Economic Measurements Of Supportmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Support to Agriculture in India in 1995-2013 and the Rules of the WTO

Brink¹

2014

SSRN Journal

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Distortions to Agricultural Versus Nonagricultural Producer Incentives

Anderson

2009

Annu. Rev. Resour. Econ.

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For more than a century, government policies have grossly distorted resource use in agriculture, both within and between countries. Earnings from farming in many developing countries have been depressed by a prourban bias in own-country policies as well as by governments of richer countries favoring their farmers with import barriers and subsidies. Both sets of policies reduce national and global economic welfare and inhibit economic growth; they also add to inequality and poverty in developing countries. Since the 1980s, however, numerous developing and some high-income country governments have reduced their sectoral and trade policy distortions. This paper draws on new empirical studies to show the changing extent of policy distortions to prices faced by the world's farmers since the 1950s. Modeling results provide an indication of how far those reforms proceeded between the early 1980s and 2004 and of how much scope remains for removing continuing inefficiencies in global agricultural resource use.

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Changing Contributions Of Different Agricultural Policy Instruments To Global Reductions In Trade And Welfare

Croser

Anderson

2010

Policy Research Working Papers

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Trade negotiators and policy advisors are keen to know the relative contribution of different farm policy instruments to international trade and economic welfare. Nominal rates of assistance or producer support estimates are incomplete indicators, especially when (especially in developing countries) some commodities are taxed and others are subsidized in which case positive contributions can offset negative contributions. This paper develops and estimates a new set of more-satisfactory indicators to examine the relative contribution of different farm policy instruments to reductions in agricultural trade and welfare, drawing on recent literature on trade restrictiveness indexes and a recently compiled database on distortions to agricultural prices for 75 developing and high-income countries over the period 1960 to 2004.Results confirm earlier findings that border taxes are the dominant instrument affecting global trade and welfare, but they also suggest declines in export taxes contributed nearly as much as cuts in import protection to global welfare gains from agricultural policy reforms since the 1980s.

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Agricultural Producer Support Estimates for Developing Countries: Measurement Issues and Evidence from India, Indonesia, China, and Vietnam

Cited by 16 publications

References 39 publications

Support to Agriculture in India in 1995-2013 and the Rules of the WTO

Support to Agriculture in India in 1995-2013 and the Rules of the WTO

Distortions to Agricultural Versus Nonagricultural Producer Incentives

Changing Contributions Of Different Agricultural Policy Instruments To Global Reductions In Trade And Welfare

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