THE IMPACT OF AGRICULTURAL POLICIES ON PRODUCING THE MOST IMPORTANT STRATEGICAL CROPS IN EGYPT | ||||
| Journal of Agricultural Economics and Social Sciences | ||||
| Article 5, Volume 30, Issue 7, July 2005, Page 3907-3918 PDF (4.02 MB) | ||||
| Document Type: Original Article | ||||
| DOI: 10.21608/jaess.2005.208462 | ||||
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| Author | ||||
| A. I. Aly, | ||||
| Dep~ rtment of Agricultural Economics, Faculty of Agric., EI - Fayoum | ||||
| Abstract | ||||
| The study aims at showing the impacts of the economic liberalization policies on the prices of the most important strategical crops in Egypt which are wheat, corn, rice and cotton, through analyzing the different relations of the liberalization period and the period before liberalization, in order to know the effect of changes in global prices on the local prices of these crops, also to know the impact of canceling the subsidy for the agricultural production requirements. By using the Dummy variable, the direct impact of integrated and partial liberalization policies had been indicated on the production, productivity and the area of wheat, corn and rice crops. While the negative impact had been indicated on cotton Studying the relation between the farm price for the unit and the productive unit cost, indicated that the price policy encourages the farmers to increase producing wheat, corn and rice during the period before implementing the economic liberalization. It indicated also that the average of increase in cost was more than the average of increase in prices during the period of integrated and partial liberalization for implementing the policies. While it had been indicated that the government encouraged cotton producers only during the period of partial liberalization. By estimating the relation between the cultivated area and the net profit of the last year, the direct impact of the net profit of the last year had been indicated on wheat, corn and rice areas during the partial liberalization period. The negative impact of cotton during the partial liberalization period had been indicated, while the direct impact of cotton had been indicated during the period of integrated implementation of policies. The results of nominal protection coefficient indicated that wheat, corn and rice producers receive a subsidy from the value of their p.oduction as a result of the positive protection which covers the producers of these crops, during the complete liberalization period in exchange for imposing an indirect taxes during the partial liberalization period. These taxes were greater during the period before implementing the policies. While the nominal protection coefficient for cotton crop indicated that the indirect taxes increase during the period of complete liberalization more than the period before. It is clear that the effective protection coefficient value passed integer one during the period of complete liberalization for wheat, corn and rice crops, this reflects that the producers of these crops are covered with a positive protection policy represented in receiving a subsidy in exchange for imposing an indirect taxes on these producers during the period of partial liberalization, and these taxes increase during the period before implementing the policies. While indirect taxes were imposed on cotton producers, these taxes reach its maximum during the complete liberalization period and reach its minimum during the period before implementing policies. By using the previous results of Domestic Resources cost factor as an indicator, the results indicated that Egypt has a competitive advantage in producing these crops -that it was indicated that the production of domestic feddan from tr.ese crops is lesser than the added value to the feddan compared with border prices. S{J it is preferable to increase the production of these crops. | ||||
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