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Pragmatism And Stability: The Political Economy Of Agricultural Pricing Policies In Malaysia, 1960-1983

Author

Listed:
  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)

  • Andrew Lai

Abstract

This study examines the development and evolution of Malaysian agricultural pricing policies in relation to rubber, oil palm, and paddy for the period 1960 to 1983. Particular emphasis is placed on tracing the political pressures that generated and sustained these policies. The magnitude of these pricing policies is measured in terms of the nominal and effective rates of protection they generate; their impact on output, consumption, and foreign exchange earnings is then estimated; and finally, the implications of these policies for the government budget and the incomes of rural households are assessed. It is shown that the agricultural pricing policies have been remarkably stable over this period. These policies have ensured that the price of paddy relative to non-agricultural prices has increased slightly over time. While the rubber and the palm oil sectors have been taxed, substantial funds have been spent on research, replanting, and rural infrastructure that have promoted rural development and the expansion of these export crops.

Suggested Citation

  • Glenn Jenkins & Andrew Lai, 1988. "Pragmatism And Stability: The Political Economy Of Agricultural Pricing Policies In Malaysia, 1960-1983," Development Discussion Papers 1988-06, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:777
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    References listed on IDEAS

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    1. Goldman, Richard H & Squire, Lyn, 1982. "Technical Change, Labor Use, and Income Distribution in the Muda Irrigation Project," Economic Development and Cultural Change, University of Chicago Press, vol. 30(4), pages 753-775, July.
    2. Goldman, Richard H., 1975. "Staple Food Self-Sufficiency and the Distributive Impact of Malaysian Rice Policy," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 14(3), pages 1-44.
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    Cited by:

    1. Bautista, Romeo M., 1988. "Agricultural Incentives and Macroeconomic Linkages In Asia," 1988 Conference, August 24-31, 1988, Buenos Aires, Argentina 183154, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Malaysia; agricultural pricing policies;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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