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Price Support versus Input Subsidy for Food Self-Sufficiency in Developing Countries

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  • Randolph Barker
  • Yujiro Hayami

Abstract

Self-sufficiency in food grains has been a publicized goal of government policy in many developing countries. Among various alternatives to achieve this goal, two policy options, output price support and input subsidy, both characterized by the government intervention into market pricing, are evaluated by applying a simple demand-supply model to the Philippine rice economy. The results demonstrate a possibility that a subsidy applied to modern inputs, such as fertilizer, that are being used below optimum can be more beneficial than supporting product prices.

Suggested Citation

  • Randolph Barker & Yujiro Hayami, 1976. "Price Support versus Input Subsidy for Food Self-Sufficiency in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(4_Part_1), pages 617-628.
    • Handle: RePEc:oup:ajagec:v:58:y:1976:i:4_part_1:p:617-628.
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    1. Henderson, Douglas & Pizio, Orest & Sokolowski, Stefan & Trokhymchuk, Andrij, 1997. "The nonuniform Wertheim Ornstein-Zernike equation: Density profiles and pair correlation functions of a dimerizing hard sphere near a hard wall," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 244(1), pages 147-163.
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    14. Jiarong Qian & Shoichi Ito & Zhijun Zhao, 2020. "The effect of price support policies on food security and farmers’ income in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1328-1349, October.
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    16. Parish, Ross M. & McLaren, Keith Robert, 1982. "Relative Cost-Effectiveness Of Input And Output Subsidies," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(1), pages 1-13, April.
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    18. Abhinav Narayanan & Shekhar Tomar, 2023. "Farm support and market distortion: Evidence from India," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 966-993, May.
    19. Alene, Arega D. & Manyong, Victor M. & Omanya, Gospel O. & Mignouna, Hodeba D. & Bokanga, Mpoko & Odhiambo, George D., 2008. "Economic Efficiency and Supply Response of Women as Farm Managers: Comparative Evidence from Western Kenya," World Development, Elsevier, vol. 36(7), pages 1247-1260, July.
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    22. Emarah, Riad El-Sayed, 1982. "Potential self-sufficiency in major Egyptian crops: necessary production and price policies as estimated by an econometric model," ISU General Staff Papers 198201010800008033, Iowa State University, Department of Economics.
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    24. Pavel Kotyza & Josef Slaboch, 2014. "Food Self Sufficiency in Selected Crops in the Czech Republic and Poland," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(6), pages 1329-1341.

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