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NEP - New Economics Papers
Issue: nep-agr-2003-07-29 - (22 papers)
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NEP report on Agricultural Economics
Edited by Angelo Zago (angelo.zago@univr.it)
This document is in the public domain, please circulate to any.
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+ Warning: Access to full +
+ contents may be restricted+
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In this issue:
*( 1 ) An Institutional Economics Approach to the Problems of Small
Farmer Credit in India
Datta Samar K
*( 2 ) Trade Remedy Laws and NAFTA Agricultural Trade
Colin Carter & Caroline Gunning-Trant
*( 3 ) Employment, Emerging Labor Markets, and the Role of Education in
Rural China
Linxiu Zhang & Jikun Huang & Scott Rozelle
*( 4 ) The Nature of Distortions to Agricultural Incentives in China and
Implications of WTO Accession
Jikun Huang & Scott Rozelle
*( 5 ) Sequencing and the Success of Gradualism: Empirical Evidence from
China's Agricultural Reform
Alan DeBrauw & Jikun Huang & Scott Rozelle
*( 6 ) A green revolution for Africa - Does it need to be so
controversial?
Hans Holm?n
*( 7 ) China's Accession to the WTO: What is at Stake for Agricultural
Markets?
Frank Fuller & John C. Beghin & Jacinto F. Fabiosa & Cheng Fang &
Holger Matthey & Stephane DeCara
*( 8 ) U.S. Farm Policy and the World Trade Organization: How Do They
Match Up?
Chad E. Hart & Bruce A. Babcock
*( 9 ) Food Security and Protection of Agriculture in Korea
Jean-Christophe Bureau & John C. Beghin & Sung Joon Park
*( 10 ) Improving Your Farm Lease Contract
William M. Edwards
*( 11 ) Ledger Provision in Hog Marketing Contracts
David A. Hennessy & Donald Lien
*( 12 ) Land and Power
Baland, Jean-Marie & Robinson, James A
*( 13 ) Local Government Behavior and Property Rights Formation in Rural
China
Loren Brandt & Scott Rozelle & Matthew Turner
*( 14 ) Seasonal Adjustment in a Market for Female Agricultural Workers
in Chile
Lovell Jarvis & Esperanza Vera-Toscana
*( 15 ) China's Accession to WTO and Shifts in the Agriculture Policy
Jikun Huang & Scott Rozelle
*( 16 ) Hazards of Expropriation: Tenure Insecurity and Investment in
Rural China
Hanan Jacoby & Guo Li & Scott Rozelle
*( 17 ) Agricultural Trade and the Doha Round: Lessons from Commodity
Studies
John C. Beghin & Ataman Aksoy
*( 18 ) Off-farm labor supply responses to permanent and transitory farm
income
Chul-Woo Kwon & Peter Orazem & Daniel Otto
*( 19 ) The Curse of Natural Resources in the Transition Econonmies of
the Former East
Tobias Kronenberg
*( 20 ) Consumers' food choice and quality perception.
Bruns?, Karen & Fjord, Thomas Ahle & Grunert, Klaus G.
*( 21 ) Maize Trade Liberalization vs. Fertilizer Subsidies in Tanzania:
A CGE Model Analysis with Endogenous Soil Fertility
Sverre Grepperud, Henrik Wiig and Finn Roar Aune
*( 22 ) Eco-labels, Production Related Externalities and Trade
Mads Greaker
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*(1)
An Institutional Economics Approach to the Problems of Small
Farmer Credit in India
Datta Samar K
Abstract: This paper applies the tools of institutional economics -
especially those pertaining to informational asymmetry and
transaction costs - for studying the credit problems of small farmers
in India, who, in spite of a vast network of credit institutions
developed over a long period of time under government ownership
and/or control, are alleged as not getting a share of formal sector
credit commensurate with their statistical dominance. It uses data
collected by the Agro-economic Research Centers and Units under the
Ministry of Agriculture, Government of India from a carefully
selected sample of 700 borrower households across the country over a
period of three years (1997-1998 to 1999-2000) to provide a
preliminary explanation of the various dimensions of a credit package
in terms of variation in borrower?s village, household and other loan
attributes.
Downloads:
http://d.repec.org/n?u=RePEc:iim:iimawp:2003-07-01&r=eff
IIMA Working Papers / Indian Institute of Management Ahmedabad, Research
and Publication Department
*(2)
Trade Remedy Laws and NAFTA Agricultural Trade
Colin Carter (University of California, Davis) ; Caroline
Gunning-Trant (University of California, Davis)
Abstract: Trade remedy law is viewed as a major vehicle for protection in
U.S. agriculture. The objective of this paper is to summarize the use
of trade remedy law by U.S. agriculture and to highlight examples of
where the use of these laws conflicts with free trade agreements such
as NAFTA. Empirical evidence is presented of the effects of U.S.
trade remedy laws on agricultural imports. We find evidence that is
consistent with trade diversion on positive rulings and an
"investigation effect" on negative rulings.
Keywords: Trade remedy laws, anti-dumping laws, countervailing duty laws,
import relief laws, U.S. agriculture,
Downloads:
http://d.repec.org/n?u=RePEc:cdl:aredav:11022&r=eff
*(3)
Employment, Emerging Labor Markets, and the Role of Education in
Rural China
Linxiu Zhang (Chinese Academy of Sciences) ; Jikun Huang
(Chinese Academy of Sciences) ; Scott Rozelle (University of
California, Davis)
Abstract: The overall goal of this paper is to contribute to the ongoing
assessment of China's rural labor markets. To meet this goal, we have
three specific objectives. First, we will provide an update of the
trends in off-farm labor participation and wages of the sample
households and examine how labor market outcomes have changed for
those with different levels of education. Second, we will then seek
to examine if education in different time periods - the late 1980s,
the early 1990s and the mid 1990s -- can be associated with
increasing access to off-farm jobs. Finally, we will examine how
returns to education have changed during the course of the reform
era. In short, our hypotheses are that if labor markets are
increasingly rewarding those with a.) better education job access;
b.) easier entry; and c.)higher wages, such outcomes will count as
evidence that labor markets are improving. Both the descriptive data
and the multivariate analysis robustly support the findings that
between the late 1980s and the mid-1990s , labor markets have
improved in the sense that rural workers have been increasingly
rewarded for their education.
Keywords: return to education, labor participant,
Downloads:
http://d.repec.org/n?u=RePEc:cdl:aredav:11007&r=eff
*(4)
The Nature of Distortions to Agricultural Incentives in China and
Implications of WTO Accession
Jikun Huang (Chinese Academy of Sciences) ; Scott Rozelle
(University of California, Davis)
Abstract: The overall goal of our paper is to understand how WTO will
affect the agriculture sector in China. To accomplish this goal we
have two specific objectives. First, we seek to provide measures of
the distortions in China's agricultural sector at a time immediately
prior to the nation's accession to WTO. Second, we seek to assess how
well integrated China's markets are in order to understand which
areas of the country and which segments of the farming population
will likely be isolated from or affected by the changes that WTO will
bring. Ultimately, with a knowledge of the size and magnitude of the
impacts, researchers will be better able to being working on
understanding how the policies that WTO will impose on China will
change the gap between the domestic and international price and
affect imports and exports, domestic production and production,
income and poverty. To meet these objectives, the rest of the paper
is organized as following. First, we will seek to provide a context
for our analysis of the current distortions that affect China's
agriculture. Second, after briefly discussing our data and way of
collecting information for calculating the gap in prices between
international and domestic markets, we present measures of NPRs for a
set of commodities for China. The next section then discusses how
these distortions should be expected to change as China implements
its WTO obligations and gains access (or not) to the promises that
were made to it. The fourth section of the paper then analyzes the
transmission of prices through the economy. The final section
discusses the implication of our findings.
Downloads:
http://d.repec.org/n?u=RePEc:cdl:aredav:11001&r=eff
*(5)
Sequencing and the Success of Gradualism: Empirical Evidence from
China's Agricultural Reform
Alan DeBrauw (Williams College) ; Jikun Huang (Chinese
Academy of Sciences) ; Scott Rozelle (University of California,
Davis)
Abstract: This paper provides evidence regarding gains to agricultural
market liberalization in China. We empirically identify the different
effects that incentive reforms and gradual market liberalization have
on China's agricultural economy during its transition period. We find
that average gains within the agricultural sector to incentive reform
exceed gains to market liberalization by a factor of ten. Our method
of analyzing the effects of transition policies on economic
performance can be generalized to other reform paths in other
transition economies.
Keywords: Effects of Agricultural market liberalization, Quasi-fixed
factor flexibility, sequencing,
Downloads:
http://d.repec.org/n?u=RePEc:cdl:aredav:11003&r=eff
*(6)
A green revolution for Africa - Does it need to be so
controversial?
Hans Holm?n
Abstract: Due to sub-Saharan Africa?s recurrent food-crises and enhanced
difficulties to feed its growing population, calls for a Green
Revolution - a substantially raised agricultural productivity by
means of scientific modernization and supportive institutional
reforms - are often aired. However, in other camps the Green
Revolution is seen as undesireable generally and as particularly
unsuitable for Africa. This paper takes a closer look at this debate,
analyses the arguments forwarded and discusses the pros and cons of a
Green Revolution in Africa. It is emphasized that the Green
Revolution - contrary to what many seem to believe - is not a static
?thing? to be imported whole-sale. On the contrary, it is highly
dynamic and, due to recent scientific break-throughs, it may now -
perhaps for the first time - be adapted to Africa?s physical,
ecological and socio-economic preconditions. The paper ends with some
suggestions about what a Green Revolution ?African style? might look
like.
Downloads:
http://d.repec.org/n?u=RePEc:icr:wpicer:04-2003&r=eff
ICER Working Papers / ICER - International Centre for Economic Research
*(7)
China's Accession to the WTO: What is at Stake for Agricultural
Markets?
Frank Fuller ; John C. Beghin ; Jacinto F. Fabiosa ; Cheng
Fang ; Holger Matthey ; Stephane DeCara
Abstract: http://www.econ.iastate.edu/research/viewabstract.asp?pid=
2085
JEL Codes: Q1
Downloads:
http://d.repec.org/n?u=RePEc:isu:genres:2085&r=eff
Staff General Research Papers / Iowa State University, Department of
Economics
*(8)
U.S. Farm Policy and the World Trade Organization: How Do They
Match Up?
Chad E. Hart ; Bruce A. Babcock
Abstract: http://www.econ.iastate.edu/research/viewabstract.asp?pid=
2057
JEL Codes: Q1
Downloads:
http://d.repec.org/n?u=RePEc:isu:genres:2057&r=eff
Staff General Research Papers / Iowa State University, Department of
Economics
*(9)
Food Security and Protection of Agriculture in Korea
Jean-Christophe Bureau ; John C. Beghin ; Sung Joon Park
Abstract: http://www.econ.iastate.edu/research/viewabstract.asp?pid
=10044
JEL Codes: A1
Downloads:
http://d.repec.org/n?u=RePEc:isu:genres:10044&r=eff
Staff General Research Papers / Iowa State University, Department of
Economics
*(10)
Improving Your Farm Lease Contract
William M. Edwards
Abstract: http://www.econ.iastate.edu/research/viewabstract.asp?pid
=10653
Downloads:
http://d.repec.org/n?u=RePEc:isu:genres:10653&r=eff
Staff General Research Papers / Iowa State University, Department of
Economics
*(11)
Ledger Provision in Hog Marketing Contracts
David A. Hennessy ; Donald Lien
Abstract: http://www.econ.iastate.edu/research/viewabstract.asp?pid
=10645
Downloads:
http://d.repec.org/n?u=RePEc:isu:genres:10645&r=eff
Staff General Research Papers / Iowa State University, Department of
Economics
*(12)
Land and Power
Baland, Jean-Marie ; Robinson, James A
Abstract: We study the implications of electoral corruption for resource
allocation, factor market equilibrium and inequality. We focus on the
control of the voting of agricultural workers by landlords and show
that if the employment relationship is subject to moral hazard then
the resulting rents conceded by employers give them a comparative
advantage in controlling the political activities of their workers.
This generates an added incentive to own land and leads to
inefficiently high land concentration. We test the predictions of the
model by examining in detail the effects of the introduction of the
secret ballot in Chile in 1958.
JEL Codes: D72 O12
Keywords: employment; inequality; land; productivity
Downloads:
http://d.repec.org/n?u=RePEc:cpr:ceprdp:3800&r=eff
CEPR Discussion Papers / C.E.P.R. Discussion Papers
*(13)
Local Government Behavior and Property Rights Formation in Rural
China
Loren Brandt (University of Toronto, Canada) ; Scott Rozelle
(University of California, Davis) ; Matthew Turner (University of
Toronto, Canada)
Abstract: We examine the ongoing transition from centrally planned to
market agriculture in rural China. In particular, we examine the
devolution of land rights from village governments to villagers and
the corresponding evolution of tenure security in agricultural land.
We find econometric support for the statistical and economic
importance of four explanations for local government behavior. Three
of these explanations indicate a link between the incentives and
constraints faced by village leaders and property rights in
agricultural land, and hence suggest policy levers to encourage more
secure property rights.
Keywords: devolution of land rights, evolution of tenure security, local
government behavior,
Downloads:
http://d.repec.org/n?u=RePEc:cdl:agrebk:11004&r=eff
*(14)
Seasonal Adjustment in a Market for Female Agricultural Workers
in Chile
Lovell Jarvis (University of California, Davis) ; Esperanza
Vera-Toscana (University of California, Davis)
Abstract: Traditionally, the analysis of labor market adjustment refers to
the interaction between the demand and the supply for labor, e.g.,
between employers and job seekers. The labor market is said to
'clear' when the wage and labor force participation adjust so that
supply and demand are equal. However, it has been observed that the
adjustment process in the agricultural casual labor market is often
uneven and incomplete. This phenomenon has challenged economists to
search for additional explanation of the workings of these markets
(see for example Rosenzweig, 1986; Binswanger and Rosenzweig, 1981).
Our study contributes to the literature by examining this issue using
a Chilean data set collected by one of the authors in which
pronounced seasonality is evident in both labor demand and labor
supply, resulting in large changes in wages, participation and
unemployment.The principal objective of this paper is to analyze the
socio-economic and demographic factors that determine seasonal labor
force participation, as well as the events that appear to be
associated with labor market entry/exit of seasonal workers in order
to enable us to understand the welfare implications of changes in
economic behavior. We will analyze these phenomena in considerable
detail and with additional econometric techniques attempting to shed
additional light on seasonal adjustment in agriculture.A major
strength of our study resides in the data set available. From January
to March 1992, data were collected from 599 workers in three growing
regions of Chile, who were then working in table grape processing
sheds. For each worker, information was collected on measured
productivity in a piece rate task in 1992, personal and family
characteristics (e.g., age, sex, education, work experience, marital
status, family composition, and family income), as well as on labor
force participation, employment, type of work, incentive mechanism
(wage or piece rate) and earnings for every day of calendar year
1991. Many of the workers surveyed held more than one job from more
than one employer during the year. This rich longitudinal data set,
including male and female workers, offers a new dimension to existing
research on seasonal labor market analysis. We have data on a large
number of factors that determine participation, employment, and
earnings, and having a large number of observations throughout the
entire year allows improved treatment of seasonal dynamics. We use
econometric models for panel data to analyze the labor participation
of individual seasonal workers, allowing for unobserved heterogeneity
and consequently endogeneity/selection bias (Vella and Verbeek,
1999). In the process, we determine the expected wage of each worker
for each day, based on that worker's human capital characteristics,
and include the expected wage as a determinant of labor force
participation. Preliminary results indicate that real wages fluctuate
considerably over the year and that seasonal wage variation is an
important aspect of labor market adjustment, contributing to a large
change in labor force participation. The labor force participation
rate of women is significantly more elastic to changes in their
expected wage than is the labor force participation rate for men,
though much of the difference in response appears to be due to the
household roles that males and females play rather than gender
differences per se. The labor force participation behavior of women
is similar to that of men when the former are the heads of household.
Although the labor force participation rates for seasonal workers
vary greatly across seasons, we still find evidence of substantial
open unemployment during the slack season. The analysis will also
provide estimates of the premium earned per day for piece rate as
opposed to wage work, and of differences in pay for male and female
workers. The study will contribute longitudinal findings that will
enhance our understanding of the dynamics of casual employment in
agriculture.
Downloads:
http://d.repec.org/n?u=RePEc:cdl:agrebk:11047&r=eff
*(15)
China's Accession to WTO and Shifts in the Agriculture Policy
Jikun Huang (Chinese Academy of Sciences) ; Scott Rozelle
(University of California, Davis)
Abstract: The overall goal of our paper is to explore this question of how
China's policy will likely respond as the nation enters the WTO.
Specifically, we will have three objectives. First, we briefly review
China's existing agriculture policy and past performance of China's
agriculture and how it has changed during the past 20 years of
reform. Next, we examine the main features of the agreement that
China must adhere to as they enter WTO. Finally, we consider a number
of possible ways that policy makers may respond, primarily focusing
on the national government's viewpoint.
Keywords: agricultural policy, changing role of agriculture, china
accession to WTO,
Downloads:
http://d.repec.org/n?u=RePEc:cdl:agrebk:11006&r=eff
*(16)
Hazards of Expropriation: Tenure Insecurity and Investment in
Rural China
Hanan Jacoby (The World Bank) ; Guo Li (EASRD Department of
the World Bank) ; Scott Rozelle (University of California, Davis)
Abstract: This paper uses household data from Northeast China to examine
the link between investment and land tenure insecurity induced by
China's system of village-level land reallocation. We quantify
expropriation risk using a hazard analysis of individual plot tenures
and incorporate the predicted "hazards of expropriation" into an
empirical analysis of plot-level investment. Our focus is on organic
fertilizer use, which has long lasting benefits for soil quality.
Although we find that higher expropriation risk significantly reduces
application of organic fertilizer, a welfare analysis shows that
guaranteeing land tenure in this part of China would yield only
minimal efficiency gains.
Downloads:
http://d.repec.org/n?u=RePEc:cdl:agrebk:11045&r=eff
*(17)
Agricultural Trade and the Doha Round: Lessons from Commodity
Studies
John C. Beghin ; Ataman Aksoy
Abstract: http://www.econ.iastate.edu/research/viewabstract.asp?pid
=10678
Downloads:
http://d.repec.org/n?u=RePEc:isu:genres:10678&r=eff
Staff General Research Papers / Iowa State University, Department of
Economics
*(18)
Off-farm labor supply responses to permanent and transitory farm
income
Chul-Woo Kwon ; Peter Orazem ; Daniel Otto
Abstract: http://www.econ.iastate.edu/research/viewabstract.asp?pid
=10643
JEL Codes: J2
Downloads:
http://d.repec.org/n?u=RePEc:isu:genres:10643&r=eff
Staff General Research Papers / Iowa State University, Department of
Economics
*(19)
The Curse of Natural Resources in the Transition Econonmies of
the Former East
Tobias Kronenberg (Maastricht Univeristy)
Abstract: The curse of natural resources is a well-documented phenomenon
in developing countries. Economies that are richly endowed with
natural resources tend to grow slowly. Among the transition economies
of the former ?Eastern Bloc?, a similar pattern can be observed. This
paper shows that a large part of the variation in growth rates among
the transition economies can be attributed to the curse of natural
resources. After controlling for numerous other factors, there is
still a strong negative correlation between natural resource
abundance and economic growth. Among the transition economies the
prime reason for the curse of natural resource is corruption. Other
reasons for the curse of natural resources may be Dutch disease
effect and a neglect of education.
JEL Codes: O0 P2 Q0
Keywords: natural resources, transition economies, growth, corruption,
dutch disease, education
Downloads:
http://d.repec.org/n?u=RePEc:wpa:wuwpge:0305002&r=eff
GE, Growth, Math methods / Economics Working Paper Archive at WUSTL
*(20)
Consumers' food choice and quality perception.
Bruns?, Karen (The MAPP Centre, Aarhus School of Business) ;
Fjord, Thomas Ahle (The MAPP Centre, Aarhus School of Business) ;
Grunert, Klaus G. (The MAPP Centre, Aarhus School of Business)
Abstract: There is a long tradition of research into consumers? food
choice and quality perception. In the last few years, however, these
topics have received even more attention due to the intense debate
about such issues as ethical considerations in relation to food
production and quality, food scandals and the resulting food scares
among consumers, genetic modification of foods, and animal welfare
(or, rather, non-welfare), which has made questions regarding food
quality and consumers? supposedly rational or irrational food choices
even more urgent. In-creased interest in health and quality stands in
stark contrast to a perceived unwillingness to pay the higher prices
this implies, and scepticism about industrial food production stands
in contrast to busy lifestyles and a resulting demand for
convenience. However, while the topics of food quality perception and
choice have certainly become more complex, research has also provided
new insights into them. The aim of this paper is to give an overview
of research carried out on consumers? food quality perception and
choice at the MAPP Centre during the last 10 years, and is part of a
major research project at F?devare?konomisk Institut (F?I). In this
project, the paper will serve as input on quality per-cep-tion from a
consumer point of view. The results presented in the paper will give
insights into how consumers perceive food quality and why they choose
the food products they do, and may thus help in understanding the
complicated concept of food quality. Although the starting point of
the paper is in research carried out at the MAPP Centre, it will also
include results from other sources where needed for a more thorough
discussion of a specific topic. The criteria for including additional
material are relevance to the topic in question and the extent to
which the topic has been researched at MAPP. As a general framework
for ana-lysing consumer quality perception and choice of food
products, MAPP has developed the Total Food Quality Model, which will
be used to structure this overview. We start by presenting the Total
Food Quality Model and an overview of the research methods involved.
We then describe the various elements of the model in more detail,
based on four major quality dimensions - health, taste, process
characteristics, convenience.
Keywords: Consumers; quality perception
Downloads:
http://d.repec.org/n?u=RePEc:hhb:aarmap:0077&r=eff
MAPP Working Papers / Aarhus School of Business, The MAPP Centre
*(21)
Maize Trade Liberalization vs. Fertilizer Subsidies in Tanzania:
A CGE Model Analysis with Endogenous Soil Fertility
Sverre Grepperud, Henrik Wiig and Finn Roar Aune (Statistics
Norway)
Abstract: This paper presents an analysis on economy-environmental
interlinkages for Tanzania by using a computable general equilibrium
(CGE) model based on a social accounting matrix. The purpose of the
analysis is to include general equilibrium effects when evaluating
two suggested policy measures meant to stimulate growth and crop
production. The model is multisectoral with a particular focus on
crop producing sectors and soil mining processes. Maize trade
liberalization and a fertilizer subsidy are considered. The model
simulations show that both policy reforms have expansive effects and
that there are significant sectoral complementarities between
agriculture and non-agriculture in Tanzania. Fertilizer subsidies
promotes cash crop production and a more land intensive production
pattern in agriculture, while a maize trade liberalization stimulates
food crops and a more land extensive agriculture. Fertilizer
subsidies are found to imply far more expansive effects than a trade
liberalization does. Only minor differences are identified between
the two policy reforms as concerning their impact on the balance of
trade, distribution and the environment.
JEL Codes: C68 Q18 Q24
Keywords: CGE-model; soil fertility; trade reform; agricultural subsidy.
Downloads:
http://d.repec.org/n?u=RePEc:ssb:dispap:249&r=eff
Discussion Papers / Research Department of Statistics Norway
*(22)
Eco-labels, Production Related Externalities and Trade
Mads Greaker (Statistics Norway)
Abstract: We analyze the trade and welfare effects of eco-labels in a
domestic market with one domestic firm and one foreign firm.
Pollution is production related, and the government can choose
between including the product category in an eco-label scheme and
setting an environmental standard. The environmental standard will
only apply to the domestic firm, while both firms can adopt the eco-
label. Given that the environmental damage is not too large, we find
that it is optimal for the government to introduce an eco-label
scheme. An eco-label scheme is optimal even though the domestic firm
may loose profit and the foreign firm may gain. Hence, the eco-label
scheme is not introduced for protectionist purposes. Further, if the
government for some reason were prevented from using eco-labels,
global, domestic and foreign welfare would be hampered.
JEL Codes: H7 Q2 R3
Keywords: Eco-labels; strategie environmental; policy; trade
Downloads:
http://d.repec.org/n?u=RePEc:ssb:dispap:332&r=eff
Discussion Papers / Research Department of Statistics Norway
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