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Impacts of Liberalizing Trade in the World Rice Market

Author

Listed:
  • Gail L. Cramer
  • Eric J. Wailes
  • Shangnan Shui

Abstract

A multi-product quadratic programming model is used to investigate impacts of trade liberalization on the world rice market, recognizing product differentiation and allowing substitution among various rice types and qualities. Model simulations predict a large increase in both trade volumes and prices for all rice types and a significant welfare gain for most rice exporters and importers. Japan, South Korea, Philippines, Taiwan, and Brazil would be the major importers. Trade liberalization would increase total U.S. export revenue by 109%. Movement to free trade by Japan has significant effects on world rice trade and on Japanese rice production.

Suggested Citation

  • Gail L. Cramer & Eric J. Wailes & Shangnan Shui, 1993. "Impacts of Liberalizing Trade in the World Rice Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 219-226.
    • Handle: RePEc:oup:ajagec:v:75:y:1993:i:1:p:219-226.
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    Cited by:

    1. Stephen Devadoss & William Ridley, 2014. "Effects of the Mexican Apple Tariff on the World Apple Market," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 763-777, November.
    2. Chi-Chung Chen & Bruce McCarl & Ching-Cheng Chang, 2012. "Climate change, sea level rise and rice: global market implications," Climatic Change, Springer, vol. 110(3), pages 543-560, February.
    3. Balié, Jean & Valera, Harold Glenn, 2020. "Domestic and international impacts of the rice trade policy reform in the Philippines," Food Policy, Elsevier, vol. 92(C).
    4. Rakotoarisoa, Manitra A., 2011. "The impact of agricultural policy distortions on the productivity gap: Evidence from rice production," Food Policy, Elsevier, vol. 36(2), pages 147-157, April.
    5. Keeney, Roman & Beckman, Jayson, 2009. "WTO negotiations on agriculture and the distributional impacts for US rice farm households," Food Policy, Elsevier, vol. 34(1), pages 70-80, February.
    6. Labson, B. Stephen & Rausser, Gordon C., 1992. "Modeling Phased Reduction of Distortionary Policies in the U.S. Wheat Market Under Alternative Macroeconomic Environments," Staff General Research Papers Archive 502, Iowa State University, Department of Economics.
    7. Wailes, Eric J. & Chavez, Eddie C., 2010. "Updated Arkansas Global Rice Model," Staff Papers 94347, University of Arkansas, Department of Agricultural Economics and Agribusiness.
    8. Sreedharan, Prasanna & Devadoss, Stephen & Stodick, Leroy & Wahl, Thomas I., 2003. "Effects Of Trade Barriers On U.S. Apple Exports," 2003 Annual meeting, July 27-30, Montreal, Canada 22172, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Hans Kremers & Harold Houba, 2007. "Bargaining for an Efficient and Fair Allocation of Emission Permits to Developing Countries," Energy and Environmental Modeling 2007 24000028, EcoMod.
    10. Wailes, Eric J. & Chavez, Eddie C., 2011. "2011 Updated Arkansas Global Rice Model," Staff Papers 102650, University of Arkansas, Department of Agricultural Economics and Agribusiness.
    11. C. S. C. Sekhar, 2010. "Structure of the World Wheat Market: Some Implications for Strategic Trade Policy?," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(2), pages 142-158.
    12. Holler Branco, José Eduardo & Bartholomeu, Daniela Bacchi & Alves Junior, Paulo Nocera & Caixeta Filho, José Vicente, 2022. "Evaluation of the economic and environmental impacts from the addition of new railways to the brazilian's transportation network: An application of a network equilibrium model," Transport Policy, Elsevier, vol. 124(C), pages 61-69.
    13. Stephen Fuller & Luis Fellin & Victoria Salin, 2003. "Effect of liberalized U.S.-Mexico rice trade: A spatial, multiproduct equilibrium analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 1-17.
    14. Jeffrey D. McDonald & Daniel A. Sumner, 2003. "The Influence of Commodity Programs on Acreage Response to Market Price: With an Illustration Concerning Rice Policy in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 857-871.
    15. Chen, Chi-Chung & McCarl, Bruce A. & Chang, Ching-Cheng & Hsu, Shih-Hsun, 2002. "Spatial Equilibrium Modeling With Imperfectly Competitive Markets: An Application To Rice Trade," 2002 Annual meeting, July 28-31, Long Beach, CA 19687, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Rakotoarisoa, Manitra A., 2008. "The Impact of Agricultural Policy Distortions on the Productivity Gap: Evidence from the Rice Production," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6154, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Nobuhiro Hosoe, 2004. "Crop failure, price regulation, and emergency imports of Japan's rice sector in 1993," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1051-1056.
    18. Rakotoarisoa, Manitra A., 2006. "Policy distortions in the segmented rice market:," MTID discussion papers 94, International Food Policy Research Institute (IFPRI).
    19. Tanaka, Tetsuji & Hosoe, Nobuhiro, 2011. "Does agricultural trade liberalization increase risks of supply-side uncertainty?: Effects of productivity shocks and export restrictions on welfare and food supply in Japan," Food Policy, Elsevier, vol. 36(3), pages 368-377, June.
    20. 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.
    21. Roshini Brizmohun, 2019. "Impact of climate change on food security of small islands: The case of Mauritius," Natural Resources Forum, Blackwell Publishing, vol. 43(3), pages 154-163, August.

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