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Price stabilization and impacts of trade liberalization in the Southeast Asian rice market

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  • Hoang, Hoa K.
  • Meyers, William H.

Abstract

A global rice model using a partial equilibrium framework is used to investigate the impact of trade liberalization in major rice trading countries of Southeast Asia, focusing on the price stabilization mechanism that has long been adopted by governments in Indonesia, Malaysia and the Philippines. The simulation results suggest that the removal of state trading enterprises in these three countries would lower their domestic prices by as much as 34% but increase the world prices by about 20%. When free trade liberalization is realized in 2020, domestic prices decline further in Indonesia and the Philippines, leading to an increase in their imports, which are estimated to be as much as 4.5milliontons. The impact on domestic prices, however, is absorbed nearly evenly among Indonesia, the Philippines, Thailand and Vietnam.

Suggested Citation

  • Hoang, Hoa K. & Meyers, William H., 2015. "Price stabilization and impacts of trade liberalization in the Southeast Asian rice market," Food Policy, Elsevier, vol. 57(C), pages 26-39.
    • Handle: RePEc:eee:jfpoli:v:57:y:2015:i:c:p:26-39
    DOI: 10.1016/j.foodpol.2015.07.009
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    Cited by:

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    7. Balié, Jean & Minot, Nicholas & Valera, Harold Glenn A., 2021. "Distributional impacts of the rice tariffication policy in the Philippines," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 289-306.
    8. Harold Glenn A. Valera & Mark J. Holmes & Valerien O. Pede & Jean Balié, 2023. "How convergent are rice export prices in the international market?," Agricultural Economics, International Association of Agricultural Economists, vol. 54(1), pages 127-141, January.
    9. Qing Zhou & Saiya Li & Yali Zhang, 2023. "Combined Impacts of COVID-19 Pandemic and Locust Plague on Grain Production and Trade Patterns in South Asia," Agriculture, MDPI, vol. 13(6), pages 1-14, June.
    10. Subir Bairagi & Samarendu Mohanty & Sampriti Baruah & Huong Trinh Thi, 2020. "Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 750-775, July.
    11. Valera, Harold Glenn & Yamano, Takashi & Pede, Valerien, 2021. "Impact of Rice Trade Policy in Southeast Asia," 2021 Conference, August 17-31, 2021, Virtual 315265, International Association of Agricultural Economists.
    12. Pieters, Hannah & Swinnen, Johan, 2016. "Trading-off volatility and distortions? Food policy during price spikes," Food Policy, Elsevier, vol. 61(C), pages 27-39.
    13. Minot, Nicholas & Balie, Jean & Valera, Harold Glenn A., 2021. "Prioritizing yield-increasing crop research for poverty impact: An application of microsimulation in the Philippines," 2021 Annual Meeting, August 1-3, Austin, Texas 313976, Agricultural and Applied Economics Association.
    14. Khondoker A. Mottaleb & Roderick M. Rejesus & MVR Murty & Samarendu Mohanty & Tao Li, 2017. "Benefits of the development and dissemination of climate-smart rice: ex ante impact assessment of drought-tolerant rice in South Asia," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(6), pages 879-901, August.
    15. Xinru Han & Yongfu Chen & Xiudong Wang, 2022. "Impacts of China’s bioethanol policy on the global maize market: a partial equilibrium analysis to 2030," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 147-163, February.

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