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Sources and Effects of Instability in the World Rice Market

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Author Info
Thomas S. Jayne () (Department of Agricultural Economics, Michigan State University)

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Abstract

This report reassesses the causal link between domestic agricultural policies and world price instability, using the case of the rice market. Specifically, the report develops a framework for analyzing the effects of domestic policies on international price stability, identifies the conditions required for government policies to destabilize world markets and econometrically examines whether these conditions apply to the trade behavior of seven major rice trading countries over the period 1960-87. This is done by comparing the estimated transmission and absorption effects with those implied under free trade, by incorporating several behavioral restrictions drawn from standard trade theory. Sensitivity analysis is then used to discern how robust the results are to changes in domestic and international price elasticities.

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File URL: http://www.aec.msu.edu/fs2/papers/idp13.pdf
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Publisher Info
Paper provided by Department of Agricultural Economics, Michigan State University in its series International Development Papers with number 13.

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Length: 104 pages
Date of creation: 1993
Date of revision:
Handle: RePEc:msu:idppap:013

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Related research
Keywords: food security; food policy; rice; trade; prices;

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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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  1. Traub, Lulama Ndibongo & Jayne, T.S., 2004. "The Effects of Market Reform on Maize Marketing Margins in South Africa," Food Security III Papers 11445, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
    Other versions:
  2. Jayne, T.S. & Jones, Stephen, 1996. "Food Marketing And Pricing Policy In Eastern And Southern Africa: Lessons For Increasing Agricultural Productivity And Access To Food," Food Security III Papers 11393, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
    Other versions:
  3. Karanja, Daniel David, 1996. "An Economic And Institutional Analysis Of Maize Research In Kenya," Food Security III Papers 11394, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
  4. Govereh, Jones & Jayne, T.S., 1999. "Effects Of Cash Crop Production On Food Crop Productivity In Zimbabwe: Synergies Or Trade-Offs?," Food Security III Papers 11354, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
    Other versions:
  5. Nassem, Anwwar & Kelly, Valerie, 1999. "Macro Trends And Determinates Of Fertilizer Use In Sub-Saharan Africa," Food Security III Papers 11465, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
    Other versions:
  6. Howard, Julie A. & Mungoma, Catherine, 1996. "Zambia'S Stop-And-Go Revolution: The Impact Of Policies And Organizations On The Development And Spread Of Maize Technology," Food Security III Papers 11299, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
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