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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. Seck, Papa A. & Tollens, Eric & Wopereis, Marco C.S. & Diagne, Aliou & Bamba, Ibrahim, 2010. "Rising trends and variability of rice prices: Threats and opportunities for sub-Saharan Africa," Food Policy, Elsevier, vol. 35(5), pages 403-411, October.
    2. Luke Harman & Catherine Goodman & Andrew Dorward, 2018. "The impact of a mosquito net voucher subsidy programme on incremental ownership: The case of the Tanzania National Voucher Scheme," Health Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 480-492, March.
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    5. David J. Hemming & Ephraim W. Chirwa & Andrew Dorward & Holly J. Ruffhead & Rachel Hill & Janice Osborn & Laurenz Langer & Luke Harman & Hiro Asaoka & Chris Coffey & Daniel Phillips, 2018. "Agricultural input subsidies for improving productivity, farm income, consumer welfare and wider growth in low‐ and lower‐middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 14(1), pages 1-153.
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    7. 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.
    8. 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.
    9. Crawford, Eric W. & Jayne, Thomas S. & Kelly, Valerie A., 2005. "Alternative Approaches for Promoting Fertilizer Use in Africa, with Particular Reference to the Role of Fertilizer Subsidies," Staff Paper Series 11557, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. 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.
    11. 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.
    12. Heisey, Paul W. & Mwangi, Wilfred, 1996. "Fertilizer Use and Maize Production in Sub-Saharan Africa," Economics Working Papers 7688, CIMMYT: International Maize and Wheat Improvement Center.
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    14. Asraul Hoque, 1993. "Allocative Efficiency and Input Subsidy in Asian Agriculture," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(1), pages 87-99.
    15. Van den Biesen, J.J.H. & Van den Meijdenberg, C.J.N., 1982. "Calculation of approximate total cross sections in the glory region from noble gas potentials," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 115(3), pages 353-374.
    16. FAIZ MOHAMMAD & SAYYID T AHlR, 1988. "Agricultural Prices in Pakistan:A Multimarket Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 27(4), pages 577-594.
    17. Andrew Dorward & Philip D. Roberts & Cambria Finegold & David J. Hemming & Ephraim Chirwa & Holly J. Wright & Rachel K. Hill & Janice Osborn & Julien Lamontagne‐Godwin & Luke Harman & Martin J. Parr, 2014. "PROTOCOL: Agricultural Input Subsidies for improving Productivity, Farm Income, Consumer Welfare and Wider Growth in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 10(1), pages 1-45.
    18. 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.
    19. van den Biesen, J.J.H. & Hermans, R.M. & van den Meijdenberg, C.J.N., 1982. "Experimental total collision cross sections in the glory region for noble gas systems," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 115(3), pages 396-439.
    20. 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.
    21. Clapp, Jennifer, 2017. "Food self-sufficiency: Making sense of it, and when it makes sense," Food Policy, Elsevier, vol. 66(C), pages 88-96.
    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.
    23. Sverre Grepperud & Henrik Wiig & Finn Roar Aune, 1999. "Maize Trade Liberalization vs. Fertilizer Subsidies in Tanzania: A CGE Model Analysis with Endogenous Soil Fertility," Discussion Papers 249, Statistics Norway, Research Department.

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