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Agricultural policy and the WTO Agreement: The Philippine Case

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  • David, Cristina C.

Abstract

The growth of the Philippine economy has been erratic since 1980’s. It is only until recently that it shows signs of catching up with the progress of its fellow Asian countries. Whether its recovery is sustainable at the aggregate level remains largely a question. Agriculture sector, however, is still bereft of such development exhibiting not only a fluctuating but also a relatively dismal performance. Comparison of Asian countries indicates that the Philippines have the most severe and most prolonged decline in the gross value added in agricultural exports. This is suspected to be due to the differences in the policy and institutional structures governing the sector. This paper analyzes the changing nature of price intervention and public expenditure policies affecting agriculture, the implications of WTO agricultural agreement on these policies and the factors in the political economy that help shape the nature of agricultural policies. Analysis shows price distortion and protection result to economy-wide inefficiencies through high consumer prices. The non-discriminating choice of policy instruments translates to inefficiency as well.

Suggested Citation

  • David, Cristina C., 1997. "Agricultural policy and the WTO Agreement: The Philippine Case," Discussion Papers DP 1997-13, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_1997-13
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    References listed on IDEAS

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    5. Kym Anderson, 1994. "Food Price Policy in East Asia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 8(2), pages 15-30, November.
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    Cited by:

    1. Caesar B. Cororaton & John Cockburn & Erwin Corong, 2005. "Doha Scenarios, Trade Reforms, and Poverty inthe Philippines: a CGE Analysis," Working Papers MPIA 2005-03, PEP-MPIA.
    2. World Bank, 2000. "Philippines - Growth with Equity : The Remaining Agenda - A World Bank Social and Structural Review," World Bank Publications - Reports 15142, The World Bank Group.
    3. Christine D. Lasco & Robert J. Myers & Richard H. Bernsten, 2008. "Dynamics of rice prices and agricultural wages in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 339-348, May.
    4. Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines," MTID discussion papers 86, International Food Policy Research Institute (IFPRI).
    5. Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines : a computable general equilibrium analysis," Policy Research Working Paper Series 3738, The World Bank.

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