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Food Pricing Policy in Developing Countries: Bias against Agriculture or for Urban Consumers?

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  • Derek Byerlee
  • Gustavo Sain

Abstract

Price policy discrimination against agricultural producers, in order to provide cheap food for urban consumers, has been widely cited in development forums as a cause of agricultural stagnation. Evidence is presented that suggests no consistent pattern of discrimination against producers for a major food commodity, wheat. However, consumer subsidies and trade policies have reduced bread prices to urban consumers in many countries. Price data from the early 1980s are assembled for thirty-one developing countries. Nominal protection coefficients for producers and consumers at official and corrected exchange rates and wheat-fertilizer price ratios are estimated for each country.

Suggested Citation

  • Derek Byerlee & Gustavo Sain, 1986. "Food Pricing Policy in Developing Countries: Bias against Agriculture or for Urban Consumers?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 961-969.
    • Handle: RePEc:oup:ajagec:v:68:y:1986:i:4:p:961-969.
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    File URL: http://hdl.handle.net/10.2307/1242142
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    Citations

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    Cited by:

    1. Schiff, Maurice & Valdes, Alberto, 1998. "Agriculture and the macroeconomy," Policy Research Working Paper Series 1967, The World Bank.
    2. Wiebelt, Manfred & Herrmann, Roland & Schenck, Patricia & Thiele, Rainer, 1992. "Discrimination against agriculture in developing countries?," Open Access Publications from Kiel Institute for the World Economy 458, Kiel Institute for the World Economy (IfW Kiel).
    3. Rausser, Gordon C. & de Gorter, Harry, 1988. "Endogenizing Policy In Models Of Agricultural Markets," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Mesfin Bezuneh & Brady Deaton & Segu Zuhair, 2003. "Food Aid Disincentives: the Tunisian Experience," Review of Development Economics, Wiley Blackwell, vol. 7(4), pages 609-621, November.
    5. Herrmann, Roland, 1988. "How does economic development and import dependency affect agricultural price protection? A pooled cross-country and time-series analysis for the wheat sector," Kiel Working Papers 342, Kiel Institute for the World Economy (IfW Kiel).
    6. Herrmann, Roland & Sulaiman, Nasarudin & Wiebelt, Manfred, 1989. "How non-agricultural import protection taxes agricultural exports: a true protection: analysis for Peru and Malaysia," Kiel Working Papers 394, Kiel Institute for the World Economy (IfW Kiel).
    7. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana II. Az agrárpolitikák magyarázata [The political economy of agrarian policy. Part II. Explanation of the agrarian policies]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 297-316.
    8. Herrmann, Roland & Schenck, Patricia & Wiebelt, Manfred, 1990. "On the measurement of agricultural protection: how price uncertainty and limited substitution matter," Kiel Working Papers 414, Kiel Institute for the World Economy (IfW Kiel).
    9. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, October.
    10. Gautam, Virender, 1992. "Identification of patterns of producer and consumer protection levels in food commodities: a cross-country, aggregate and commodity-specific analysis," ISU General Staff Papers 1992010108000017588, Iowa State University, Department of Economics.
    11. Byerlee, Derek & Morris, Michael L., 1990. "Calculating Measures Of Protection: Is It Always Appropriate To Use World Reference Prices?," 1990 Annual meeting, August 5-8, Vancouver, Canada 271009, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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