Journal of Rural Economics
Online ISSN : 2188-1057
Print ISSN : 0387-3234
ISSN-L : 0387-3234
Volume 96, Issue 1
Displaying 1-12 of 12 articles from this issue
article
  • Junichi ITO
    2024 Volume 96 Issue 1 Pages 1-17
    Published: June 25, 2024
    Released on J-STAGE: September 25, 2024
    JOURNAL FREE ACCESS

    If a country’s agricultural policy is biased toward promoting the export of crops in which the country has a comparative advantage, the international competitiveness of its agriculture will be disproportionately strengthened, and the trading result will be different from what it should have been. To test this hypothesis, this study performed a dynamic panel analysis using the System Generalized Method of Moments (S-GMM). Empirical results show that the export promotion policies of competitive countries increase significantly the revealed comparative advantage indexes. This implies that domestic policies exempted from the reduction commitments under the WTO Agreement on Agricultural may be serving as hidden export subsidies. At the same time with the existence of such a policy bias, this study suggests the validity of the principle of comparative advantage.

    Download PDF (1255K)
research letter
feedback
Top