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Food-Pricing Policy in Developing Countries: Further Evidence on Cereal Producer Prices

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  • Daphne S. Taylor
  • Truman P. Phillips

Abstract

Recently, two independent studies have produced contradicting evidence regarding the extent of price discrimination in developing countries. The objective of this study is to reexamine the evidence of direct and indirect distortion in cereal producer prices. Nominal protection coefficients for wheat, maize, and rice are calculated for fifty-one developing countries spanning the period 1980–86. Black market exchange rates are used to adjust the nominal protection coefficients to reflect the indirect effect of price interventions through exchange rate policies. The results confirm the conventional wisdom that, although developing countries tend to protect domestic cereal producers, taxation caused by overvaluation of official exchange rates exceeds any direct price protection offered domestic producers.

Suggested Citation

  • Daphne S. Taylor & Truman P. Phillips, 1991. "Food-Pricing Policy in Developing Countries: Further Evidence on Cereal Producer Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1036-1043.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:4:p:1036-1043.
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    File URL: http://hdl.handle.net/10.2307/1242431
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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. Akram A. Khan & Nazli Bano, 2007. "Declining Indian Agricultural Trade in an Unequal World," Global Business Review, International Management Institute, vol. 8(1), pages 99-117, February.
    3. Christophe Muller, 2005. "Poverty and inequality under income and price dispersions," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 979-998, August.
    4. Sain, Gustavo & Lopez-Pereira, Miguel A., 1999. "Maize Production and Agricultural Policies in Central America and Mexico," Economics Working Papers 7680, CIMMYT: International Maize and Wheat Improvement Center.
    5. 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.
    6. Afeikhena Jerome & Olawale Ogunkola, 2000. "Characteristics and Behaviour of African Commodity/Product Markets and Market Institutions and Their Consequences for Economic Growth," CID Working Papers 35A, Center for International Development at Harvard University.
    7. Arifa Jannat & Kentaka Aruga & Jun Furuya & Miyuki Iiyama, 2022. "Investigating the Impact of International Markets on Imported and Exported Non-Cereal Crops in Bangladesh," Agriculture, MDPI, vol. 12(6), pages 1-16, June.
    8. Rejesus, Roderick M. & Heisey, Paul W. & Smale, Melinda, 1999. "Sources of Productivity Growth in Wheat: A Review of Recent Performance and Medium- to Long-Term Prospects," Economics Working Papers 7693, CIMMYT: International Maize and Wheat Improvement Center.
    9. Sartorius von Bach, Helmke & van Zyl, Johan & Vivier, Leon & Millard, Solly, 1992. "Price Leadership In The South African Carbohydrate Market," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(4), December.
    10. Rubeena Asghar & Sabeela Asghar & Hafsah Batool, 2021. "Position of Pakistani Basmati Rice in International Markets (A Comparative Analysis)," International Journal of Agriculture & Sustainable Development, 50sea, vol. 3(4), pages 94-98, December.
    11. Rakotoarisoa, Manitra & Gulati, Ashok, 2006. "Competitiveness and trade potential of India's dairy industry," Food Policy, Elsevier, vol. 31(3), pages 216-227, June.
    12. Afeikhena Jerome & Olawale Ogunkola, 2000. "Characteristics and Behavior of African Commodity/Product Markets and Market Institutions and Their Consequences for Economic Growth," CID Working Papers 35, Center for International Development at Harvard University.
    13. Jones, Stephen, 1995. "Food market reform: the changing role of the state," Food Policy, Elsevier, vol. 20(6), pages 551-560, December.
    14. Fatah, Fazleen Abdul & Cramon-Taubadel, Stephan Von, 2017. "Profitability and Competitiveness of Rice Farming in Malaysia: A Policy Analysis Matrix," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 14(2), December.

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