2003 Fiscal Year Final Research Report Summary
Econometric Analysis on Japanese Agricultural Policies : A Matrix Approach
| Project/Area Number |
13660229
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Agro-economics
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| Research Institution | Wako University |
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Principal Investigator |
KOBAYASHI Hiroaki Wako University, Faculty of Economics, Associate Professor, 経済学部, 助教授 (70329019)
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| Project Period (FY) |
2001 – 2003
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| Keywords | Policy Evaluation Matrix / Agricultural Support Policies / Comparative Statics / Japanese Meat Sector / Japanese Crop Sector / Production Function / Elasticity of Substitution / Agricultural Trade |
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| Research Abstract |
The paper makes a survey on analytical challenges in recent literatures regarding (1)Japanese agricultural policy reforms in terms of PSE and multifunctionality, and (2)possible impacts of FTAs of which negotiations are under going. In the context of WTO, the movement from market price supports (MPS) to decoupled measures of direct payment delays compared with other OECD countries. The Japanese government wants to justify its protection policies which promote multifunctionality, of paddy fields or rice production in particular. The author's analysis employing the Policy Evaluation Matrix (PEM) approach, which has been developed by the OECD, shows large impacts of support measures on functions of land conservation, parts of multifunctionality, and effectiveness of border measures (MPS) is less than that of measures of direct payment. Alternative frameworks analyzing possible impacts of FTAs on Japanese agriculture are also considered. Default numbers of ongoing database in GTAP being applied very often in recent studies would be skeptical in cases of Japanese rates of duty. Careful applications of GTAP are suggested and the classical Viner's approach would be helpful in first step, intuitive considerations. The Bertrand's game approach would be also useful for ex-post analyses. Using this approach, we could evaluate possible reactions by non-member countries using data in cases of GSP provisions. In general, support policies critical in the Japanese agriculture, e.g., rice, sugar and starch are managed by quantitative measures such as TRQ and sometimes by measures not necessarily transparent, which makes it difficult to estimate possible impacts of FTAs.
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