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Evaluation of external market effects and government intervention in Malaysia's agricultural sector: a computable general equilibrium framework

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  • Yeah, Kim Leng
  • Yanagida, John F.
  • Yamauchi, Hiroshi

Abstract

The purpose of this study is to evaluate the effects of changes in the external trade environment and domestic economic policies on the agricultural development of Malaysia. The scope of this research also includes providing further insights into the strengths and weaknesses of the computable general equilibrium (CGE) methodology for agricultural policy analysis. The first analysis focuses on the export agriculture sector which encompasses Malaysia's two primary agricultural commodities, rubber and palm oil. Heavily dependent on exports of rubber in the 1950s and 1960s, Malaysia has since built a more diversified economy with strong emphasis on manufacturing. Export agriculture, however, is still an important component of the national economy. The second objective examines the influence of domestic policy on agricultural development. The simulation results demonstrate the growing resiliency of the Malaysian economy to external shocks. Also, they point to the domestic economy's ability to buffer internal Policy‐induced distortions.
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  • Yeah, Kim Leng & Yanagida, John F. & Yamauchi, Hiroshi, 1994. "Evaluation of external market effects and government intervention in Malaysia's agricultural sector: a computable general equilibrium framework," Agricultural Economics, Blackwell, vol. 11(2-3), pages 237-256, December.
    • Handle: RePEc:eee:agecon:v:11:y:1994:i:2-3:p:237-256
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    Cited by:

    1. Saeed Solaymani & Mehdi Shokrinia, 2016. "Economic and environmental effects of trade liberalization in Malaysia," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 101-120, October.
    2. Saeed Solaymani, 2016. "Impacts of energy subsidy reform on poverty and income inequality in Malaysia," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2707-2723, November.
    3. Solaymani, Saeed & Kari, Fatimah, 2013. "Environmental and economic effects of high petroleum prices on transport sector," Energy, Elsevier, vol. 60(C), pages 435-441.
    4. Ali, Muhammad Fadzli & Akber, Md. Ali & Smith, Carl & Aziz, Ammar Abdul, 2021. "The dynamics of rubber production in Malaysia: Potential impacts, challenges and proposed interventions," Forest Policy and Economics, Elsevier, vol. 127(C).
    5. Solaymani, Saeed & Kari, Fatimah, 2014. "Impacts of energy subsidy reform on the Malaysian economy and transportation sector," Energy Policy, Elsevier, vol. 70(C), pages 115-125.

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