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Gains and Losses of Alternative Food Grains Programmes in Malaysia


Baharumshah, Ahmad Zubaidi (1994) Gains and Losses of Alternative Food Grains Programmes in Malaysia. Pertanika Journal of Social Sciences & Humanities, 2 (2). pp. 77-86. ISSN 0128-7702


This study extends the partial equilibrium analysis to calculate the welfare effects of quotas/tariffs by recognizing the substitution relationship between rice and wheat. It is shown that ignoring the substitution effects leads to a significant understatement of the welfare cost. Three policy options, that is, import quota/tariff, free trade and deficiency payment are considered in this paper. The results show that import quota/tariff is not the most efficient way to support the domestic producers. The net social cost of the rice programme will be lower if the current option is replaced by deficiency payment plans. The social cost under current quota price premium is more than 11 times higher than deficiency payment plan.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: Universiti Putra Malaysia Press
Depositing User: Yusfauhannum Mohd Yunus
Date Deposited: 06 Mar 2009 12:27
Last Modified: 27 May 2013 06:51
URI: http://psasir.upm.edu.my/id/eprint/917
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