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Food Security and Agricultural Protection in South Korea
Author(s) -
Beghin John C.,
Bureau JeanChristophe,
Park Sung Joon
Publication year - 2003
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/1467-8276.00460
Subject(s) - restrictiveness , food security , agriculture , welfare , production (economics) , international trade , trade barrier , business , negotiation , economics , international economics , agricultural productivity , agricultural economics , microeconomics , market economy , philosophy , linguistics , political science , law , ecology , biology
South Korea has been pursuing food self‐sufficiency using high tariffs and high administrative prices in key agricultural and food markets. Using a dual approach to trade and trade restrictiveness indices, we analyze the impact of these market distortions on welfare and trade volume. Then, we compute second‐best distortions, which minimize the welfare cost of meeting observed levels of self‐sufficiency and production. We rationalize these second‐best distortions to what could be claimed as legitimate protection under a “food security” (FS) box in World Trade Organization (WTO) negotiations. FS‐box protection is sensitive to changes in the definition and the extent of the FS objectives. We show that FS via production targets and reliance on imports would be more palatable to consumers and trade partners, while preserving income transfer to the farm sector.