Impact of Trade Facilitation Measures and Regional Trade Agreements on Food and Agricultural Tarde in South Asia

The study assess the extent to which trade facilitation in South Asia help to improve trade flows in South Asian countries and their trading partners.Trade Facilitation, Regional Trade Agreements, Food and Agricultural Trade, South Asia

Rice Market Liberalization and Household Welfare in Sri Lanka: A General Equilibrium Analysis

Current trade policy pursued by the Sri Lankan government on rice can best be described as ad-hoc as it is characterized by protecting farmers during glut seasons and consumers during deficit seasons. This study examines the economy-wide impacts of various policy packages on rice and related markets, which consist of liberal as well as protectionist elements. A general equilibrium model developed for the Sri Lankan economy using the input-output table for 2000 was used for the analysis. The model consists of 5 sectors, 2 factors of production and households in 8 representative provinces. The key results of the analysis indicate that removal of the import tariff on rice along with removals of the import tariff on fertilizer and/or subsidy payments on other agricultural sectors could improve economic efficiency and household welfare across provinces. Contrary to the general belief that protectionism is pro-poor, an import ban on rice reduces household income and welfare even in agricultural provinces, including Uva and Sabaragamuwa. Further analysis indicates that broad-brush approaches may not yield expected outcomes, as the policy packages generate second best outcomes due to existence of other distortions in the economy. The key channel of transmission of trade shock to households appears to be through government transfer payments that are influenced by changes in government expenditures on subsidy payments.International Relations/Trade,

Coping with food price hikes: strategies of the poor in Kandy, Sri Lanka

The objectives of this study are to assess: (i) the resource profile of the vulnerable households in Kandy district in Sri Lanka, (ii) food consumption pattern of the households, (iii) the coping strategies adopted by the households during the times of food price hikes, (iv) the usefulness and effectiveness of coping strategies adopted by the household, and (v) the factors that influence the decisions made by households to change their food consumption patterns in crisis situations.Food hikes, Kandy, Sri Lanka

Impacts of trade liberalization and market reforms on the rice sector in Sri Lanka

"The overall objective of this research project is to assess the impacts of different types of government policies (pertaining to the domestic and external sectors) on the status of food security in the country, with particular emphasis on the paddy/rice sector....The study concludes by drawing policy implications, based on the analysis and findings of the study. Some of the important ones are that rice trade should be liberalized, as it leads to an increase in efficiency and net gains at the national level....A second policy implication is that government procurement should continue but private sector participation in imports should be allowed. Finally, the findings of this study indicate that methods to help farmers combat the oligopsony power of millers should be provided. These may include provision of storage and credit facilities and strengthening of farmer organizations." From Author's Executive Summary

Assessing Consumer Attitudes and Perceptions Towards Food Quality: The Case of Consumption of Tetra-Packed Fresh Milk in Sri Lanka

The objectives of this study are (i) to assess consumer perceptions on fresh milk that are stored in tetra-packs, and (ii) to determine the relationship between the perceptions and the socio-economic characteristics of the consumers. Using Caswell's four subsets of food quality (i.e. food safety, nutrition, value, and packaging) two indices, namely Mean Attribute Score (MAS) and a Food Quality Responsive Index (FQRI) were developed, which describe how important each of these four subsets and various attributes included in each subset for a consumer to be "loyal" with fresh milk in a tetra-pack instead of spending that part of money on close substitutes. A sample of 664 consumers were randomly selected and interviewed using a structured questionnaire at 10 different marketplaces in the Gampaha district in Sri Lanka from April to May in 2005. A subset of 100 consumers who consumes the product more frequently was considered for further analysis. Ordered Logistic Regression technique was used to estimate the coefficients of the model, to which five levels for the dependent variable was derived using the range of values of the FQRI. The results based on the MAS indicate that consumers tend to purchase tetra-pack considering the attributes included in value and package subsets mainly, including purity, appearance, size, convenience, and informational labeling etc. However, consumers did not believe that it enhances those attributes included in "food safety" and "nutritional" subsets. The statistical outcome shows that age, gender, level of education and income have a significant impact on this behavior. It suggests that the "market" can promote the consumption of fresh milk provided that a product complies with the safety and nutritional standards set by the "government".Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

An Economic Assessment of the BSE Crisis in Canada: Impact of Border Closure and BSE Recovery Programs

This article assesses the economic consequences of three alternative government responses to the BSE crisis in Canada: 1) expansion in slaughter capacity; 2) partial destruction of the cattle herd; and 3) deficiency payments. Each of these policies is evaluated under four different border situations: 1) autarky; 2) free trade in young beef only; 3) free trade in young beef and cattle; and 4) complete free trade. The results of the policy analysis are quite sensitive to the border assumptions, making it impossible to select a “best†policy without perfect foresight with respect to the timing and the extent of the border opening.BSE, cattle and beef, partial equilibrium model, simulation, trade ban, International Relations/Trade, Livestock Production/Industries,

IMPACTS OF BSE CRISIS ON THE CANADIAN ECONOMY: AN INPUT-OUTPUT ANALYSIS

This study assesses the impacts of BSE crisis on the Canadian economy at the provincial level using an input-output model. The impacts of reductions in exports of beef and cattle on Gross Domestic Product at provincial level, employment, labor income and industrial production are evaluated for Alberta, Ontario, Quebec and Saskatchewan provinces. The results show that a reduction of value of exports by $10 million would reduce average Gross Domestic Product and labor income in above provinces by$8.7 and $3.7 millions. Approximately 145 jobs per province would be lost and industrial production would be reduced by$19.7million. The sizes of the impacts on various industries are different in different provinces reflecting the heterogeneity in intra-industrial linkages among provinces. A reduction in beef exports has significant adverse effects on animal slaughtering, rendering and meat processing, cattle and animal food manufacturing industries while a reduction in cattle exports has significant adverse effects on cattle, feed grain and animal food manufacturing industries in most of the cases.Agribusiness, Financial Economics,

Disruption in the Supply Chain for Beef and Pork: What Has Happened and What Was NAFTA Doing

Industrial Organization, International Relations/Trade,

An Economic Assessment of the BSE Crisis in Canada: Impacts of Border Closure and BSE Recovery Programs

Using a static, multi-market, partial equilibrium model this paper assesses the economic consequences three alternative government responses to the BSE crisis in Canada: 1) expansion in slaughter capacity, 2) partial destruction of the cattle herd, and 3) deficiency payments. Each of these policies is evaluated under four different border situations 1) free trade in young beef only, the 2004 baseline situation; 2) autarky; 3) free trade in young beef and cattle; and 4) complete free trade. The results of the policy analysis are quite sensitive to the border assumptions employed making it impossible to select a "best" policy without perfect foresight with respect to the timing and the degree of border opening.Livestock Production/Industries,

Decomposition of Productivity Growth in Sri Lanka’s Paddy Sector : Roles of Area Expansion and Chemical Fertilizer Use

Peer reviewe