Terms of Trade in Japanese Agriculture ---A comparative Analysis with US.and EC in 1980's---

Research Project

Project/Area Number	05660241
Research Category	Grant-in-Aid for General Scientific Research (C)
Allocation Type	Single-year Grants
Research Field	Agro-economics
Research Institution	Hokkaido University
Principal Investigator	OSANAMI Fumio Faculty of Agriculture, Hokkaido University, Associate Prof., 農学部, 助教授 (00113697)
Project Period (FY)	1993 – 1994
Project Status	Completed (Fiscal Year 1994)
Budget Amount *help	¥1,900,000 (Direct Cost: ¥1,900,000) Fiscal Year 1994: ¥600,000 (Direct Cost: ¥600,000) Fiscal Year 1993: ¥1,300,000 (Direct Cost: ¥1,300,000)
Keywords	Japanese agriculture / Terms of trade / Comparative analysis / Exchange rate currency / Price differentials between domestic and oversea markets / Production Structure / Agricultural input Price / Deregulation / 流通構造 / 外国為替変動 / 投入財価格 / 農産物価格 / 流通再編 / 市場構造
Research Abstract	The changing course in terms of "term of trade in agricultural sector" shows the difference among Japan, US and EC countries.The terms of trade in Japanese agricultural sector has increased since 1960's, except the period that the rice acreage restriction program effected in early 1970's.The terms of trade in US agricultural sector has decreased since mid 1970's.The average of EC's indicator has kept the constant level in longer term. Dr.Ohkawa explained the reason why Japanese agricultural trade of term show an increasing pattern in prewar era, defining that "Rice" has the characteristics of "C" in Japan.The classificaion of good in trade theory was made by J.R.Hicks.He classified tradable goods as "A", non-tradable goods as "B" and tradable but the price is determined mainly by domestic factors as "C".He also made clear the implication of the analysis, concluding that the development of food processing industry might weaken the "C factor" in Japanese agriculture. The study examined the … More changing cause of Japanese agricultural in terms of trade, identifying tradable goods and non-tradable goods in both agricultural products and inputs.The share of rice has decreased to 25% by 30 % since 1950's and dairy product and vegetables increased to 27%, 24% respectively. Farmers grow much more less-competitive product against agricultural trade liberalization in 1980's, although Japanese agricultural policy has biased in rice sector which keep "C factor." The advanced storage technology and advanced distribution system has been adopted and make possible to supply farm products in stable market.These effects contributed much to the good situation in terms of trade.On the other hand the performance of the agricultural input industry was very low.The price of agricultural input kept high comparing with the import price.Usage of imported input is an effective way to improve farmer's situation.The study shows the effect of cost reduction in fertilizer's case, estimating the derived demand elasticity. Less