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Distorted Agricultural Incentives and Economic Development: Asia’s Experience

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Author Info
Anderson, Kym

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Abstract

Earnings from farming in many low-income countries have been depressed by a pro-urban 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. The rapid development of many Asian emerging economies has been accompanied by a gradual reduction in their anti-agricultural policies, but many distortions remain and some countries have moved from negative to positive assistance for farmers, following the earlier examples of first Japan and then Korea and Taiwan. Drawing on results from a new multi-country research project, this paper examines the extent of these changes relative to those of other developing countries over the past five decades. It concludes by pointing to prospects for further policy reform in Asia.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6914.

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Date of creation: Jul 2008
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Handle: RePEc:cpr:ceprdp:6914

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Related research
Keywords: agricultural and trade policy reforms Asian agricultural development Distorted incentives

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry 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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This page was last updated on 2008-11-7.

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