Impact of alternative trade regimes and domestic support services on Philippine agriculture
Professorial Chair Lecture
Development Fund Professorial Chair Lecture
Place
Multipurpose Room, College of Economics and Management, UPLB, College, Laguna
Date
7-1-2003
Abstract
The objective of this paper is to discuss some policy experiments using a multi-market quantitative analytical framework developed by the author, called the Agricultural Policy Simulation Model (APSM). The main purpose of the simulation model is to analyze the likely impacts of macroeconomic and sector specific policies on the agricultural and rural sector and to measure inter-commodity and household level impact of alternative policy options and program changes in major commodities such as rice, corn, sugar, meat, and fish. The ultimate objective of the analytical framework is to generate relevant information that can help focus program and policies in agriculture towards sustained and broadly based growth for poverty eradication and household food security.
The analytical framework mentioned attempts to look at the interrelationships among policies and external influences, agricultural sector, and the economy. While the framework developed has the capability to handle a wide range of policy mix, this paper discusses policy experiments with respect to selected current issues on agriculture trade liberalization and major public goods that enhance agricultural productivity and growth. Comparative assessments were conducted of (1) uniform versus non-uniform tariffs, (20 MAVs vs. unified tariff rates, (3) level of variability of world prices, (4) provision of support services such as research and extension, and (5) irrigation investments.
In general the simulations show that (1) uniform tariffs tend to result to higher output in the long run as resources flow to more efficient sectors; (2) A freer trade regime, where imports fill in for production shortfalls results to more stable prices; (3) productivity, output, and prices are affected by stability of world price trends and a high price variability results to higher poverty incidence in rural and urban areas; (4) a higher growth rate in research and development and extension will have a significant impact on output and productivity as well as on overall agricultural growth and poverty alleviation; and (5) a sustained and more accelerated investment in irrigation has a positive impact on output and productivity as well as on poverty alleviation and overall agricultural growth.
Location
UPLB Main Library Special Collections Section (USCS)
College
College of Economics and Management (CEM)
Language
English
Recommended citation
Paris, Tirso B. Jr, "Impact of alternative trade regimes and domestic support services on Philippine agriculture" (2003). Professorial Chair Lecture. 907.
https://www.ukdr.uplb.edu.ph/professorial_lectures/907
